# In the matter of STG Lifecare Limited IA-3161-2020 in IB-1950-ND-2019

> NCLT judgment dated 2020-08-18. Citation: TCN-2020-NCLT-00833. This case involves an application (IA/3161/2020) filed in relation to an insolvency proceeding…

- **Court:** NCLT
- **Order date:** 18 Aug 2020
- **Citation:** TCN-2020-NCLT-00833
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/stg-lifecare-limited-ia-3161-2020-in-ib-1950-nd-2019-dfa77554

## Summary

### Background

This case involves an application (IA/3161/2020) filed in relation to an insolvency proceeding (IB/1950/ND/2019). BSE Limited, the operational creditor, sought to withdraw the insolvency application. The COC, consisting of only BSE Limited, resolved to withdraw the IB application in its IIIrd COC Meeting held on 14.07.2020. The application was supported by minutes of the meeting and a copy of the order dated 10.01.2020 admitting the insolvency application.

## Facts

BSE Limited, an operational creditor, initiated insolvency proceedings against STG Lifecare Limited under IB/1950/ND/2019. BSE Limited, being the sole member of the Committee of Creditors (COC), resolved in its IIIrd COC Meeting on 2020-07-14 to withdraw the insolvency application. An application (IA/3161/2020) was filed under Section 12A of IBC for withdrawal of the insolvency application. The minutes of the COC meeting and the order dated 2020-01-10 admitting the insolvency application were annexed to the application. The IRP had been paid, and no dues were outstanding with respect to the CIRP process. BSE Limited sought exemption from submitting a bank guarantee, which was granted by the court.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the insolvency application (IB-1950/ND/2019) should be …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code (IBC) allows for the withdrawal of an

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**Reasoning:** The court considered the resolution passed by the COC, consisting of the sole operational

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**Interpretation:** Section 12A provides a mechanism for withdrawal of insolvency applications,

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**Application:** The court applied the principle of Section 12A to the facts of the case, where

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## Parties

- **Judges:** DEEPTI M…; SUMΙΤΑ PURK…
- **Appellants:** Mr.Abhish…
- **Respondents:** STG Lifecare…

## Timeline

- **2020-01-10 — Order Da…**: Order admitting the…
- **2020-07-14 — COC Meet…**: IIIrd COC Meeting held, where BSE Limited…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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