# In the matter of Shobha Cards Pvt. Ltd. IA 1270 OF 2021 IN IB-2322-ND-2019

> NCLT judgment dated 2021-03-17. Citation: TCN-2021-NCLT-02675. The case involves an application under Section 12A of the IBC read with Regulation 30A of the…

- **Court:** NCLT
- **Order date:** 17 Mar 2021
- **Citation:** TCN-2021-NCLT-02675
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shobha-cards-pvt-ltd-ia-1270-of-2021-in-ib-2322-nd-2019-a04b468a

## Summary

### Background

The case involves an application under Section 12A of the IBC read with Regulation 30A of the Insolvency Resolution Regulations, 2016, for withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Shobha Cards Private Limited. The application was filed before the National Company Law Tribunal (NCLT), New Delhi, Bench VI.

## Facts

Kotak Mahindra Bank Ltd. initiated a Corporate Insolvency Resolution Process (CIRP) against M/s. Shobha Cards Pvt. Ltd. under Section 7 of the IBC. The Interim Resolution Professional (IRP) was appointed. Subsequently, the Committee of Creditors (CoC) resolved with a 96.7% majority to file a withdrawal application under Section 12A of the IBC. The application was filed before the NCLT, New Delhi. The relevance of the CoC's decision is that it is a crucial factor in determining whether the CIRP should continue or be withdrawn. The NCLT considered the CoC's decision and the submissions of the IRP's counsel.

## Issues and analysis

### Issue 1: Whether the Interlocutory Application for withdrawal of the Corporate Insolvency Resolution Process …

**Ratio:** The legal principle applied is that the Committee of Creditors (CoC) has the authority to

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**Reasoning:** The court reasoned that the CoC, with a 96.7% majority, had resolved to file a withdrawal

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**Interpretation:** Section 12A of the IBC, read with Regulation 30A of the Insolvency Resolution

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**Application:** In this specific case, the CoC's resolution with a 96.7% majority to withdraw

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** Kotak Mahindra…
- **Respondents:** M/s. Shobha Cards…

## Timeline

- **N/A — Initiation…**: Kotak Mahindra Bank Ltd. initiated Corporate Insolvency Resolution Process against M/s.…
- **2021-03-17 — Order Del…**: Order delivered on 17.03.2021…

## 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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