# In the matter of Jay Polypack Pvt. Ltd. IA-831(AHM)2021 in CP(IB) 587 of 2018

> NCLT judgment dated 2021-12-14. Citation: TCN-2021-NCLT-00173. The application IA/831(AHM)2021 was filed by the Resolution Professional (RP) under Section 12A…

- **Court:** NCLT
- **Order date:** 14 Dec 2021
- **Citation:** TCN-2021-NCLT-00173
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jay-polypack-pvt-ltd-ia-831ahm2021-in-cpib-587-of-2018-b7ad41ac

## Summary

### Background

The application IA/831(AHM)2021 was filed by the Resolution Professional (RP) under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking withdrawal of the main Corporate Insolvency Resolution Process (CIRP). The Committee of Creditors (CoC) approved the withdrawal in its meeting held on October 26, 2021, with 100% votes. The Hon'ble NCLAT in Company Appeal (AT) (Ins) No. 362 of 2021 vide order dated September 20, 2021, observed that the Corporate Debtor and Operational Creditor had settled the dispute and informed the CoC, which then directed the IRP to file the application for withdrawal of CIRP.

## Facts

The Corporate Debtor and Operational Creditor settled their dispute, leading the CoC to direct the IRP to file an application for withdrawal of the CIRP. The CoC approved the withdrawal with 100% votes in a meeting held on October 26, 2021. The RP filed IA/831(AHM)2021 under Section 12A of the IBC for withdrawal of the main CP. The NCLAT had previously observed the settlement between the parties in Company Appeal (AT) (Ins) No. 362 of 2021. The NCLT then allowed the withdrawal of the main CP and related applications.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC should be allowed …

**Ratio:** Section 12A of the IBC allows for the withdrawal of CIRP with the approval of the CoC.

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**Reasoning:** The NCLT considered the CoC's decision to withdraw the matter, which was based on the

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**Interpretation:** Section 12A of the IBC is interpreted to allow withdrawal of CIRP when the

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**Application:** In this case, the Corporate Debtor and Operational Creditor settled their

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## Parties

- **Judges:** Madan B.…; Ajai Das Me…
- **Appellants:** SGV FOILS PVT.…
- **Respondents:** JAY POLYPACK PVT.…
- **Advocates:** Nitu Chat…; Parth…

## Timeline

- **2021-10-26 — CoC Meet…**: The CoC approved the resolution for…
- **2021-09-20 — NCLAT Or…**: The Hon'ble NCLAT in Company Appeal (AT) (Ins) No. 362 of 2021 observed that the…

## 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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