# In the matter of Shree Shankar Infratech Pvt. Ltd. CP (IB) No. 51-CTB-2019

> NCLT judgment dated 2019-11-14. Citation: TCN-2019-NCLT-00601. The case pertains to CP(IB) No. 51/CTB/2019, where an application was filed by the Operational…

- **Court:** NCLT
- **Order date:** 14 Nov 2019
- **Citation:** TCN-2019-NCLT-00601
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-shankar-infratech-pvt-ltd-cp-ib-no-51-ctb-2019-eed01794

## Summary

### Background

The case pertains to CP(IB) No. 51/CTB/2019, where an application was filed by the Operational Creditor seeking termination of the Corporate Insolvency Resolution Process (CIRP) that was initiated on 27.09.2019. The Operational Creditor and the Corporate Debtor settled their claims under a deed of settlement dated 30.10.2019. The Resolution Professional (RP) filed a progress report and stated that the Committee of Creditors (CoC) meeting held on 08.11.2019 approved the filing of a petition under Section 12A of the Insolvency and Bankruptcy Code (IBC) for withdrawal of the CIRP.

## Facts

The Operational Creditor filed CP(IB) No. 51/CTB/2019, leading to the initiation of the CIRP on 27.09.2019. Subsequently, the Operational Creditor and the Corporate Debtor reached a settlement agreement dated 30.10.2019. The Resolution Professional (RP) submitted a progress report. A CoC meeting was convened on 08.11.2019, where the members voted with 100% approval for filing a petition under Section 12A of the IBC to withdraw the CIRP. The Operational Creditor then filed IA No. 155/CTB/2019 seeking termination of the CIRP. The Adjudicating Authority considered the settlement, the RP's report, and the CoC's decision to allow the withdrawal.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should allow the withdrawal of the CIRP based on the settlement …

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

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**Reasoning:** The CoC approved the withdrawal of the CIRP with 100% voting share, indicating a

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**Interpretation:** Section 12A provides a mechanism for the withdrawal of CIRP if the CoC approves

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**Application:** In this case, the CoC approved the withdrawal with 100% voting share, and the

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## Parties

- **Judges:** Sucharit…; Satya Ranjan…
- **Respondents:** M/s Shree Shankar…; Sunil Kumar…

## Timeline

- **2019-09-27 — CIRP Init…**: CIRP initiated based on…
- **2019-10-30 — Settlement Ag…**: Operational Creditor and Corporate…

## 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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