# In the matter of SDS Infratech Pvt. Ltd. IA-2364-ND-2021 in (IB)-2684(ND)2019

> NCLT judgment dated 2021-05-31. Citation: TCN-2021-NCLT-02079. The case involves an application filed under Section 12A of the Code seeking withdrawal of…

- **Court:** NCLT
- **Order date:** 31 May 2021
- **Citation:** TCN-2021-NCLT-02079
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sds-infratech-pvt-ltd-ia-2364-nd-2021-in-ib-2684nd2019-18385ba6

## Summary

### Background

The case involves an application filed under Section 12A of the Code seeking withdrawal of IB-2684/ND/2019. The CIRP order was passed on 12.05.2021, and the parties had entered into a settlement on 10.05.2021. A copy of the MoU executed between the parties on 10.05.2021 is annexed with the application. Form-‘FA' being consent of the Applicant is also annexed. The CoC was not constituted, and no claims were received till date.

## Facts

An application was filed under Section 12A of the Code to withdraw IB-2684/ND/2019. The CIRP order was issued on 2021-05-12. The parties reached a settlement on 2021-05-10, evidenced by a Memorandum of Understanding (MoU). The applicant's consent, Form-'FA,' was annexed. The Interim Resolution Professional (IRP) stated that the Committee of Creditors (CoC) was not formed, and no claims were received. The IRP confirmed compliance with the order dated 2021-05-12 by filing Form-2 and stated that all expenses and fees were paid. The IRP was discharged, and the Corporate Debtor's management was reinstated.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the insolvency proceedings under Section 12A of the Code …

**Ratio:** Section 12A of the Code allows for the withdrawal of CIRP upon application by the

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**Reasoning:** The court reasoned that since the parties had reached a settlement and the IRP confirmed

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**Interpretation:** Section 12A is interpreted to allow for flexibility in withdrawing CIRP,

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**Application:** In this case, the court applied the principle of Section 12A by considering the

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## Parties

- **Judges:** DEEPTI M…; SUMITAPURKA…
- **Appellants:** Kunal Ag…
- **Respondents:** SDS Infratech…; M/s SDS Infratech…
- **Advocates:** Bharat…; Shalabh S…; +2 more

## Timeline

- **2021-05-10 — Settlement Ag…**: Parties entered into a…
- **2021-05-12 — CIRP Ord…**: CIRP order was…

## 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)

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