# In the matter of Shree Khodal Cot - Gin Pvt. Ltd.IA 324-2020 in CP (I.B) No. 572-NCLT-AHM-2018

> NCLT judgment dated 2020-06-29. Citation: TCN-2020-NCLT-01097. The case involves an application filed under Section 12A of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 29 Jun 2020
- **Citation:** TCN-2020-NCLT-01097
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-khodal-cot-gin-pvt-ltdia-324-2020-in-cp-ib-no-572-nclt-ahm-2018-95279532

## Summary

### Background

The case involves an application filed under Section 12A of the Insolvency & Bankruptcy Code, 2016, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated based on a petition filed by Bank of Baroda against the corporate debtor, leading to the appointment of Mr. Prawin Charan Dwary as the Interim Resolution Professional (IRP). The IRP undertook necessary publications, and a Committee of Creditors (CoC) was constituted, with Bank of Baroda as the sole member holding 100% voting rights. Subsequently, Bank of Baroda submitted an application in Form FA seeking withdrawal of the CIRP.

## Facts

Bank of Baroda initiated Corporate Insolvency Resolution Process (CIRP) against an unnamed corporate debtor by filing CP (IB) No.572 of 2018, which was admitted on 01.01.2020. Mr. Prawin Charan Dwary was appointed as the Interim Resolution Professional (IRP). Following the appointment, the IRP made a paper publication. Claims were received until 25.01.2020, and a Committee of Creditors (CoC) was constituted, with the report filed on 27.01.2020. The CoC consisted of only Bank of Baroda, holding 100% voting rights, with an admitted claim of Rs.99,007,757.91. The first CoC meeting was on 03.02.2020, resolving to continue with the IRP as RP. In the second CoC meeting on 19.03.2020, the RP received an application from Bank of Baroda in Form FA, authorizing Mr. Manish Kumar,

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## Issues and analysis

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

**Ratio:** The legal principle applied is that there is no bar to allowing the withdrawal

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**Reasoning:** The court reasoned that since the CoC, consisting solely of Bank of Baroda, approved the

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**Interpretation:** Section 12A of the IBC, read with Regulation 30A of the CIRP Regulations,

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**Application:** In this case, the CoC, being Bank of Baroda, approved the withdrawal

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## Parties

- **Judges:** Manorama…; Chockalingam…

## Timeline

- **2018-01-01 — CP (IB) No.572 of 2018…**: CP (IB) No.572 of 2018…
- **2020-01-01 — CP (IB) No.572 of 2018…**: CP (IB) No.572 of 2018 was…

## 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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