# In the matter of Trio Fab (I) Pvt. Ltd. MA-1421-2018 In CP (IB)-1309-MB-2017

> NCLT judgment dated 2018-11-29. Citation: TCN-2018-NCLT-00269. The case involves MA 1421/2018 filed by Federal Bank Ltd, a financial creditor, under Section…

- **Court:** NCLT
- **Order date:** 29 Nov 2018
- **Citation:** TCN-2018-NCLT-00269
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/trio-fab-i-pvt-ltd-ma-1421-2018-in-cp-ib-1309-mb-2017-990f6f9d

## Summary

### Background

The case involves MA 1421/2018 filed by Federal Bank Ltd, a financial creditor, under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking permission to withdraw the petition. The bank also reserved its right as a secured creditor to recover the outstanding debt from M/s. Trio Fab (India) Pvt Ltd. The Resolution Professional also filed MA 1379/2018 seeking the same prayer for withdrawal. The CoC minutes dated 6.11.2018 indicated that the Federal Bank's representative consented to the Resolution Professional filing the application in Form FA before the Adjudicating Authority.

## Facts

Federal Bank Ltd initiated Corporate Insolvency Resolution Process (CIRP) against Trio Fab (India) Pvt Ltd. Federal Bank, being the sole financial creditor, held 100% voting share in the Committee of Creditors (CoC). Subsequently, Federal Bank filed an application (MA 1421/2018) under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to withdraw the CIRP petition. This withdrawal request was supported by a resolution passed by the CoC with a 100% voting share. The Resolution Professional (RP) also filed a separate application (MA 1379/2018) for withdrawal. The CIRP had commenced on 18.5.2018. The bank also wanted to reserve its right to initiate legal action for recovery of the outstanding debt. The CIRP expenses amounted to Rs.16,58,747.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP petition filed by Federal Bank under Section 12A …

**Ratio:** Section 12A of the IBC allows the Adjudicating Authority to permit the withdrawal of an

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**Reasoning:** The court reasoned that the condition stipulated in Section 12A, requiring a 90% voting

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

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**Application:** In this case, the 100% approval from the CoC clearly met the threshold

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Federal Ban…
- **Respondents:** TRIO FAB (I) PVT.…

## Timeline

- **2018-11-29 — Order Da…**: Order sheet of the hearing of Mumbai Bench…
- **2018-06-11 — CoC Meet…**: CoC minutes dated 6.11.2018 wherein it is stated that "representative of the Federal Bank…

## 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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