# In the matter of Sujata Capital Services Limited IA No. 830-2019 in CP (IB) No. 700-7-HDB-2018

> NCLT judgment dated 2019-10-17. Citation: TCN-2019-NCLT-00943. The case involves an Interlocutory Application (IA No. 830 of 2019) filed in CP (IB) No.…

- **Court:** NCLT
- **Order date:** 17 Oct 2019
- **Citation:** TCN-2019-NCLT-00943
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sujata-capital-services-limited-ia-no-830-2019-in-cp-ib-no-700-7-hdb-2018-11dd09b7

## Summary

### Background

The case involves an Interlocutory Application (IA No. 830 of 2019) filed in CP (IB) No. 700/07/HDB/2018 under Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Regulation 30(A)(1)(a) of the Insolvency and Bankruptcy Code (Corporate Insolvency Resolution Process) Regulations, 2016. The application was filed by the Resolution Professional (RP) on behalf of Bhiragacha Finance Company Pvt Ltd, the sole member of the Committee of Creditors (CoC), seeking to recall the order dated 24.04.2019, which had admitted and initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Sujana Capital Services Limited. The applicant also sought permission to withdraw the petition.

## Facts

Bhiragacha Finance Company Pvt Ltd initiated Corporate Insolvency Resolution Process (CIRP) against Sujana Capital Services Limited under CP (IB) No. 700/07/HDB/2018, which was admitted on 2019-04-24. Subsequently, Bhiragacha Finance Company Pvt Ltd, being the sole member of the Committee of Creditors (CoC), received a payment of ₹50,00,000 on 2019-09-16 from M/s. Info Tech Infin and Trading Private Limited on behalf of the Corporate Debtor, settling the dues. The applicant issued Form FA dated 2019-09-16 to the Resolution Professional (RP), indicating their intention to withdraw the CIRP. The 3rd CoC meeting was held on 2019-09-16, where the withdrawal application under Section 12A was unanimously approved. The Financial Creditor also paid the entire Insolvency

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should allow the withdrawal of the Corporate Insolvency …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Regulation 30A(1)(a)

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**Reasoning:** The court reasoned that the Financial Creditor, being the sole member of the CoC, had

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**Interpretation:** Section 12A provides a mechanism for withdrawing a CIRP application when the

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**Application:** In this case, the Financial Creditor (Bhiragacha Finance Company Pvt Ltd)

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** Bhiragacha…
- **Respondents:** Sujana Capital…

## Timeline

- **2018-01-01 — CP (IB)…**: CP (IB) No.700/07/HDB/2018 filed…
- **2019-04-24 — CIRP Admi…**: The petition bearing CP (IB)…

## 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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