# In the matter of Forts Biotech Pvt. Ltd. IA No. 410-JPR-2019 & IA No. 264-JPR-2020 in CP No. (IB)-81-7-JPR-2018

> NCLT judgment dated 2020-11-05. Citation: TCN-2020-NCLT-00292. The case involves an application (IA No. 264/JPR/2020) filed for urgent hearing of IA No.…

- **Court:** NCLT
- **Order date:** 5 Nov 2020
- **Citation:** TCN-2020-NCLT-00292
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/forts-biotech-pvt-ltd-ia-no-410-jpr-2019-ia-no-264-jpr-2020-in-cp-no-ib-81-7-jpr-14650b94

## Summary

### Background

The case involves an application (IA No. 264/JPR/2020) filed for urgent hearing of IA No. 410/JPR/2019. IA No. 410/JPR/2019 was filed by the Resolution Professional (RP) of Forts Biotech Pvt. Ltd. under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking withdrawal of Corporate Insolvency Resolution Process (CIRP) initiated against Forts Biotech Pvt. Ltd. (Corporate Debtor). The CIRP was initiated on 08.03.2019 when CP No. 81/7/JPR/2018 was admitted. The Suspended Board of Directors of the Corporate Debtor settled the matter with the Committee of Creditors (CoC). The CoC, in its 9th meeting held on 07.11.2019, resolved to withdraw the CP No. 81/7/JPR/2018 with 100% voting share and authorized the RP to file an application before the Adjudicating

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## Facts

DCB Bank is the Financial Creditor. Forts Biotech Pvt. Ltd. is the Corporate Debtor. CIRP was initiated against Forts Biotech Pvt. Ltd. on 08.03.2019 when CP No. 81/7/JPR/2018 was admitted. The Suspended Board of Directors of the Corporate Debtor settled the matter with the CoC members. The CoC, in its 9th meeting held on 07.11.2019, resolved to withdraw the CP No. 81/7/JPR/2018 with 100% voting share. Kamal Kumar Jain, RP of Forts Biotech Pvt. Ltd., filed IA No. 410/JPR/2019 seeking withdrawal of the CP No. 81/7/JPR/2018. IA No. 264/JPR/2020 was filed for urgent hearing of IA No. 410/JPR/2019. The key fact is the settlement between the Corporate Debtor and the CoC, leading to the CoC's decision to withdraw the CIRP.

## Issues and analysis

### Issue 1: Whether IA No. 410/JPR/2019, seeking withdrawal of the CIRP against Forts Biotech Pvt. Ltd., should …

**Ratio:** Section 12A of the IBC, 2016 allows for the withdrawal of CIRP with the approval of 90%

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**Reasoning:** The court considered the resolution passed by the CoC with 100% voting share, the filing

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**Interpretation:** Section 12A provides a mechanism for the CoC to withdraw CIRP if a settlement

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**Application:** In this case, the CoC approved the withdrawal of CIRP with 100% voting share,

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## Parties

- **Judges:** Ajay Kumar…; RaghuNa…
- **Appellants:** Kamal Kumar Jain,…
- **Respondents:** Forts Biotech…; None App…
- **Advocates:** Saumil S…; Abhishek Bh…; +1 more

## Timeline

- **2019-03-08 — CIRP Init…**: CIRP against Forts Biotech Pvt. Ltd. was…
- **2019-11-07 — CoC Meet…**: The CoC in its 9th meeting resolved to withdraw the CP No. 81/7/JPR/2018 with 100% voting…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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