# In the matter of Shyam Digital Communications Pvt. Ltd. CA No. 735-C-III-ND-19 in IB 688-ND-2019

> NCLT judgment dated 2019-10-16. Citation: TCN-2019-NCLT-00960. The case involves M/s. Earthcon Promoters Ltd. as the petitioner and M/s. Shyam Digital…

- **Court:** NCLT
- **Order date:** 16 Oct 2019
- **Citation:** TCN-2019-NCLT-00960
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shyam-digital-communications-pvt-ltd-ca-no-735-c-iii-nd-19-in-ib-688-nd-2019-de082e8c

## Summary

### Background

The case involves M/s. Earthcon Promoters Ltd. as the petitioner and M/s. Shyam Digital Communications Pvt. Ltd. as the respondent. The matter was filed under Section 9 of the IBC 2016. The Resolution Professional filed an application under Section 12A, supported by a resolution passed by the Committee of Creditors (CoC) in its meeting held on October 1, 2019. The CoC approved the recall of the Corporate Insolvency Resolution Process (CIRP) with a 100% voting share. The Operational Creditor agreed to withdraw the original petition as they received three cheques, one of which was realized.

## Facts

M/s. Earthcon Promoters Ltd. initiated proceedings against M/s. Shyam Digital Communications Pvt. Ltd. under Section 9 of the IBC 2016. The CIRP was initiated on September 3, 2019. The Resolution Professional filed an application under Section 12A of the IBC, supported by a resolution passed by the CoC on October 1, 2019, with 100% voting share, to recall the CIRP. The Operational Creditor agreed to withdraw the original petition after receiving three cheques, one of which was realized. The two Financial Creditors involved are Canara Bank and Bank of Baroda. The Resolution Professional also filed Form-FA, which is placed at page 31.

## Issues and analysis

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

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

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**Reasoning:** The court considered the CoC's resolution, which had 100% voting share in favor of

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if a substantial majority

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**Application:** In this case, the CoC's resolution with 100% voting share and the Operational

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## Parties

- **Judges:** CH. MOHD SHARIEF…; K.K. V…
- **Appellants:** M/s. Earthcon…
- **Respondents:** M/s Shyam Digital…

## Timeline

- **2019-10-01 — CoC Meet…**: The Committee of Creditors (CoC) held a meeting and passed a resolution to recall the…
- **2019-09-03 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Shyam Digital…

## 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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