# In the matter of Netsoft Consulting Services Pvt. Ltd. IB-1893-ND-2019

> NCLT judgment dated 2020-03-11. Citation: TCN-2020-NCLT-01607. An application was filed under Section 12A of the IBC read with 30A of the IBBI (CIRP)…

- **Court:** NCLT
- **Order date:** 11 Mar 2020
- **Citation:** TCN-2020-NCLT-01607
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/netsoft-consulting-services-pvt-ltd-ib-1893-nd-2019-a1a734e8

## Summary

### Background

An application was filed under Section 12A of the IBC read with 30A of the IBBI (CIRP) Regulations, 2016, along with an affidavit. The court heard the submissions made by the counsel for the Interim Resolution Professional (IRP). The Resolution Professional (RP) was also present. The agenda passed by the Committee of Creditors (COC) with 100% voting indicated that the resolution professional should file an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) of the corporate debtor, which was admitted under Section 9 of the IBC, in view of Section 12A read with Regulation 30A of IBBI (CIRP) Regulations, 2016. The counsel for the financial creditor and the directors were also present.

## Facts

Mr. Salasar Techno Engineering Ltd. filed a petition against M/s. Net Soft Consulting under Section 9 of the IBC. An application was subsequently filed under Section 12A of the IBC read with 30A of the IBBI (CIRP) Regulations, 2016, seeking withdrawal of the CIRP. The COC approved the withdrawal with 100% voting. The counsel for the IRP/RP, the financial creditor, and the directors were present during the proceedings. The application for withdrawal was based on Section 12A of IBC, which allows for withdrawal of CIRP under certain conditions, particularly with the approval of the COC. The fact that the COC approved the withdrawal with 100% voting is a key factor in the court's decision.

## Issues and analysis

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

**Ratio:** Section 12A of the IBC allows for the withdrawal of CIRP with the approval of 90% voting

…

**Reasoning:** The court considered the application filed under Section 12A of the IBC, read with

…

**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if the COC, representing

…

**Application:** In this case, the COC's 100% approval met the threshold required for withdrawal

…

## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** Salasar Techno…
- **Respondents:** M/s. Net Soft…

## Timeline

- **2020-03-11 — Order Del…**: The order was delivered on March 11, 2020,…

## 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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