# 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-00933. 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-00933
- **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-a092fff3

## 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. The petition was admitted on 2019-04-24. Bhiragacha Finance Company Pvt Ltd was the sole financial creditor. The Corporate Debtor, Sujana Capital Services Limited, settled the dues of the Financial Creditor by paying ₹50,00,000 on 2019-09-16 through Info Tech Infin and Trading Private Limited. The Financial Creditor acknowledged the settlement and issued Form FA expressing interest to withdraw the CIRP. The Committee of Creditors (CoC), consisting solely of the Financial Creditor, unanimously approved the withdrawal of the CIRP in its meeting on 2019-09-16. The Resolution Professional (RP) then filed an application (IA No. 830 of 2019)

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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 Adjudicating Authority observed that the provisions of Regulation 30A were duly

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**Interpretation:** Section 12A provides a mechanism for withdrawing a CIRP application if certain

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**Application:** In this case, the Corporate Debtor settled the dues with the Financial

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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/20…
- **2019-04-24 — Admission o…**: 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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