# In the matter of JSD Steel Pvt. Ltd. (IB)-284(PB)-2018

> NCLT judgment dated 2019-11-25. Citation: TCN-2019-NCLT-00475. The case involves an application filed by the Resolution Professional under Section 12A of the…

- **Court:** NCLT
- **Order date:** 25 Nov 2019
- **Citation:** TCN-2019-NCLT-00475
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jsd-steel-pvt-ltd-ib-284pb-2018-23d92164

## Summary

### Background

The case involves an application filed by the Resolution Professional under Section 12A of the Insolvency & Bankruptcy Code seeking withdrawal of CP. No. (IB)-284(PB)/2018. The resolution for withdrawal was supported by 94.35% of the Committee of Creditors (CoC) and was resolved in a meeting on 2019-10-31. The settlement offer was made by the corporate debtor to be accepted and the Corporate Insolvency Resolution Process to be withdrawn. The Corporate Insolvency Resolution Process was initiated on 2018-07-20.

## Facts

An application was filed by the Resolution Professional under Section 12A of the Insolvency & Bankruptcy Code to withdraw CP. No. (IB)-284(PB)/2018. The resolution for withdrawal was supported by 94.35% of the Committee of Creditors (CoC). The resolution was passed in a meeting held on 2019-10-31, where a settlement offer made by the corporate debtor was accepted. The Corporate Insolvency Resolution Process (CIRP) had been initiated on 2018-07-20. The CoC comprised five members. The RP stated that he was satisfied with the proposal for making the payment of his fee/cost. Notice of the application was issued to the non-applicant respondent, M/s. JSD Steel Pvt. Ltd.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process under Section …

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

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**Reasoning:** The court reasoned that the resolution for withdrawal had been carried by 94.35% of the

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**Interpretation:** Section 12A provides a mechanism for withdrawing the CIRP if a substantial

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**Application:** In this case, the CoC's decision to approve the withdrawal with 94.35% support

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## Parties

- **Judges:** M. M. K…; SH. S. K.…
- **Appellants:** Oriental Bank of…
- **Respondents:** JSD Steel Pvt.…

## Timeline

- **2018-07-20 — Initiation…**: Corporate Insolvency Resolution Process was…
- **2019-10-31 — CoC Meet…**: Meeting held where the resolution for withdrawal was passed with 94.35% support, and 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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