# 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-02083. The application IA-2364/ND/2021 was filed under Section 12A of the Code, seeking withdrawal of…

- **Court:** NCLT
- **Order date:** 31 May 2021
- **Citation:** TCN-2021-NCLT-02083
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sds-infratech-pvt-ltd-ia-2364-nd-2021-in-ib-2684nd2019-ad026739

## Summary

### Background

The application IA-2364/ND/2021 was filed under Section 12A of the Code, seeking withdrawal of IB-2684/ND/2019. The CIRP order was passed on 12.05.2021. The parties had entered into a settlement on 10.05.2021, and a copy of the MoU was annexed with the application. The CoC was not constituted, and no claims were received till date. The IRP filed Form-2 in compliance with the order dated 12.05.2021 and stated that all expenses and fees were paid.

## Facts

Kunal Agarwal filed an application against M/s SDS Infratech Pvt. Ltd. seeking initiation of CIRP. An order was passed initiating CIRP on 2021-05-12. Subsequently, the parties reached a settlement on 2021-05-10 and filed an application under Section 12A of the Code for withdrawal of the CIRP. The IRP confirmed that the CoC was not constituted and no claims were received. The IRP also confirmed that all expenses and fees were paid. The relevance of the settlement is that it provides a basis for withdrawing the CIRP. The fact that the CoC was not constituted and no claims were received simplifies the withdrawal process.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the Code should be allowed, …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code allows for the withdrawal of CIRP with

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**Reasoning:** The court reasoned that since the parties had reached a settlement, the CoC was not

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**Interpretation:** Section 12A is interpreted to provide flexibility in allowing withdrawal of

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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…

## Timeline

- **2021-05-12 — CIRP Order…**: The CIRP order was…
- **2021-05-10 — Settlement…**: The parties entered…

## 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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