# In the matter of Laxme Saai Steel Private Limited IA No. 398-2018 In CP (IB) No. 95-9-HDB-2018

> NCLT judgment dated 2018-09-26. Citation: TCN-2018-NCLT-00717. The case involves an application for withdrawal of the corporate insolvency resolution process…

- **Court:** NCLT
- **Order date:** 26 Sept 2018
- **Citation:** TCN-2018-NCLT-00717
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/laxme-saai-steel-private-limited-ia-no-398-2018-in-cp-ib-no-95-9-hdb-2018-076aa835

## Summary

### Background

The case involves an application for withdrawal of the corporate insolvency resolution process (CIRP) initiated under Section 9 of the Insolvency and Bankruptcy Code (IBC). The application for withdrawal was filed under Section 12A of the IBC, seeking permission to withdraw the initial application. The CIRP was initiated against Laxmi Sai Steel Pvt Ltd based on an application by Oswal Smelters Private Limited. The Interim Resolution Professional (IRP) formed a Committee of Creditors (COC) and conducted meetings. The IRP received Form FA from the operational creditor, Oswal Smelters, and other financial creditors, indicating no objection to the withdrawal. The suspended board of directors of the corporate debtor submitted a demand draft to cover the costs incurred.

## Facts

Oswal Smelters Private Limited initiated CIRP against Laxmi Sai Steel Pvt Ltd under Section 9 of IBC. The NCLT admitted the application on 2018-07-13 and appointed K. Venkateswarlu as IRP. The IRP formed a COC and conducted meetings on 2018-08-11, 2018-09-07, and 2018-09-11. The IRP received provisional balance sheets as of 2018-03-31 and 2018-07-13 from the suspended board member of the corporate debtor. Oswal Smelters and other creditors submitted Form FA indicating no objection to the withdrawal. The corporate debtor submitted a demand draft of Rs. 6,80,000 to cover the costs incurred. The COC approved the withdrawal with 100% voting share on 2018-09-11. The IRP filed an application under Section 12A of the IBC for withdrawal of the CIRP. The relevance of these

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of an application admitted under …

**Ratio:** Section 12A of the IBC empowers the Adjudicating Authority to allow the withdrawal of an

…

**Reasoning:** The court reasoned that Section 12A explicitly grants the Adjudicating Authority the

…

**Interpretation:** Section 12A is interpreted as a mechanism to facilitate settlements and

…

**Application:** In this case, the COC approved the withdrawal with 100% voting share, exceeding

…

## Parties

- **Judges:** Ratakonda…
- **Appellants:** Oswal Smelters…
- **Respondents:** Laxmi Sai Steel…
- **Advocates:** G. Bhu…; Mel. Nazeeruddin…; +5 more

## Timeline

- **2018-07-13 — Application A…**: Tribunal admitted the application…
- **2018-07-13 — IRP Appo…**: K. Venkateswarlu…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/laxme-saai-steel-private-limited-ia-no-398-2018-in-cp-ib-no-95-9-hdb-2018-076aa835