# In the matter of Sitaram Maharaj Sakhar Karkhana (Khardi) Ltd. MA 2194-2019 in CP(IB)-4069(MB)-2018

> NCLT judgment dated 2019-07-17. Citation: TCN-2019-NCLT-02483. The case involves an application filed by the Resolution Professional seeking an order under…

- **Court:** NCLT
- **Order date:** 17 Jul 2019
- **Citation:** TCN-2019-NCLT-02483
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sitaram-maharaj-sakhar-karkhana-khardi-ltd-ma-2194-2019-in-cpib-4069mb-2018-09bcb135

## Summary

### Background

The case involves an application filed by the Resolution Professional seeking an order under Section 12A of the Insolvency and Bankruptcy Code, 2016, for withdrawal of the Corporate Insolvency Resolution Process (CIRP) against Sitaram Maharaj Sakhar Karkhana (Khardi) Ltd. The Committee of Creditors (CoC) had approved the withdrawal of CIRP after the erstwhile management of the Corporate Debtor deposited ₹14.0 crores in an escrow account with Dena Bank (now Bank of Baroda).

## Facts

Dena Bank (now Bank of Baroda) initiated Corporate Insolvency Resolution Process (CIRP) against Sitaram Maharaj Sakhar Karkhana (Khardi) Ltd. The Committee of Creditors (CoC) approved the withdrawal of the CIRP after the Corporate Debtor deposited ₹14.0 crores in an escrow account. The Resolution Professional (RP) filed an application under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of the CIRP. The bank submitted Form FA for withdrawal of CIRP. The Corporate Debtor undertook to pay the outstanding CIRP costs. No Expression of Interest (Eol) was ever invited in this case. MA 2194/2019 was filed for urgent mentioning of MA 2210/2019 u/s 12A. MA 2029/2019 was also filed by the RP.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP under Section 12A of the Insolvency and Bankruptcy …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of

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**Reasoning:** The court reasoned that the CoC had approved the withdrawal of CIRP after the Corporate

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if the CoC approves and

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**Application:** In this case, the CoC approved the withdrawal, the Corporate Debtor deposited

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## Parties

- **Judges:** M.K. Sh…
- **Respondents:** Sitaram Maharaj…

## Timeline

- **2019-06-17 — MA 2194/2019…**: MA 2194/2019 filed for urgent…
- **2019-06-07 — MA 2210/2019…**: Application filed by the Resolution…

## 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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