# In the matter of Fortune Fasteners Private Limited CA. No. 179-2019 in (IB)-1292(ND)2018

> NCLT judgment dated 2019-06-03. Citation: TCN-2019-NCLT-03095. The case involves an application (CA No. 179/2019) filed under Section 12A of the Insolvency &…

- **Court:** NCLT
- **Order date:** 3 Jun 2019
- **Citation:** TCN-2019-NCLT-03095
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fortune-fasteners-private-limited-ca-no-179-2019-in-ib-1292nd2018-d48c8fb5

## Summary

### Background

The case involves an application (CA No. 179/2019) filed under Section 12A of the Insolvency & Bankruptcy Code, 2016, seeking the withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor. The Operational Creditor proposed the withdrawal, which was initiated vide order dated 24.04.2019. The Committee of Creditors (COC), consisting of Union Bank of India as the sole member, approved the withdrawal with 100% voting in its meeting held on 21.05.2019.

## Facts

AV Wires Private Limited initiated CIRP against Fortune Fasteners Private Limited. The CIRP was initiated vide order dated 24.04.2019. The Operational Creditor proposed the withdrawal of the CIRP. The COC, comprised of Union Bank of India as the sole member, approved the withdrawal with 100% voting in a meeting held on 21.05.2019. The application for withdrawal was filed under Section 12A of the Insolvency & Bankruptcy Code, 2016. The Company Secretary made submissions supporting the withdrawal. The IRP's expenses and fees were fully paid.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the Insolvency & …

**Ratio:** Section 12A of the Insolvency & Bankruptcy Code, 2016, allows for the withdrawal of

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**Reasoning:** The court considered the documents on record and the submissions made by the learned

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if the COC approves it

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**Application:** In this case, the sole member of the COC, Union Bank of India, approved the

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## Parties

- **Judges:** DEEPTI M…; Pradeep R.…
- **Appellants:** AV Wires Private…
- **Respondents:** Fortune Fasteners…
- **Advocates:** Harish T…; Mahavir Prashad…

## Timeline

- **2019-04-24 — Order Date of CIRP…**: CIRP initiated against the Corporate…
- **2019-05-21 — COC Meet…**: The 1st COC meeting was held on 21.05.2019, where the withdrawal of CIRP was approved…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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