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

> NCLT judgment dated 2019-11-25. Citation: TCN-2019-NCLT-00469. 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-00469
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jsd-steel-pvt-ltd-ib-284pb-2018-935d96d7

## 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 creditors and was resolved in a meeting on 2019-10-31, indicating that a settlement offer made by the corporate debtor was accepted. The Corporate Insolvency Resolution Process (CIRP) was initiated based on CP. No. (IB)-284(PB)/2018.

## Facts

Oriental Bank of Commerce filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, leading to the initiation of Corporate Insolvency Resolution Process (CIRP) against JSD Steel Pvt. Ltd. Subsequently, a resolution for withdrawal of the CIRP was proposed, with 94.35% of the creditors approving the withdrawal in a meeting held on 2019-10-31. This resolution was based on a settlement offer made by JSD Steel Pvt. Ltd. The Resolution Professional filed an application under Section 12A of the IBC seeking withdrawal of CP. No. (IB)-284(PB)/2018. The CoC comprised of five members. The RP confirmed satisfaction with the proposal for payment of fees/costs.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) should …

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

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**Reasoning:** The court reasoned that the resolution for withdrawal was supported by 94.35% of the CoC,

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**Interpretation:** Section 12A provides a mechanism for settling disputes and withdrawing CIRP if

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**Application:** In this case, the court applied the ratio by noting that the 94.35% approval

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## Parties

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

## Timeline

- **2018-07-20 — Initiation…**: Corporate Insolvency Resolution Process (CIRP) was initiated against JSD Steel Pvt. Ltd.…
- **2019-10-31 — Resolution for…**: A resolution for withdrawal of the CIRP was passed with 94.35% approval from the…

## 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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