# In the matter of Two Way Container Lines Pvt. Ltd. I.A. (IB) No. 790-KB-2020 in CP(IB) No. 1228-KB-2019

> NCLT judgment dated 2020-09-22. Citation: TCN-2020-NCLT-00556. The case involves an application (I.A. (IB) No. 790/KB/2020) filed under Section 12A of the…

- **Court:** NCLT
- **Order date:** 22 Sept 2020
- **Citation:** TCN-2020-NCLT-00556
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/two-way-container-lines-pvt-ltd-ia-ib-no-790-kb-2020-in-cpib-no-1228-kb-2019-0ef781fd

## Summary

### Background

The case involves an application (I.A. (IB) No. 790/KB/2020) filed under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of Corporate Insolvency Resolution Process (CIRP) initiated via CP(IB) No. 1228/KB/2019. The basis for the withdrawal is a settlement between the parties. The Committee of Creditors (CoC) approved the resolution for withdrawal in its 2nd meeting held on 17/08/2020 with 100% voting share.

## Facts

Indus Container Lines Pvt. Ltd. initiated a Corporate Insolvency Resolution Process (CIRP) against Two Way Container Lines Pvt. Ltd. under the Insolvency and Bankruptcy Code, 2016. An application, I.A. (IB) No. 790/KB/2020, was filed under Section 12A of the IBC seeking withdrawal of the CIRP based on a settlement between the parties. The Committee of Creditors (CoC) approved the resolution for withdrawal in its 2nd meeting held on 17/08/2020 with 100% voting share. The Resolution Professional's fees were stated to have been paid, with the Financial Creditor undertaking to clear any remaining dues. The court considered these facts and the CoC's approval before disposing of the application.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

**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 resolution for withdrawal with 100%

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**Interpretation:** Section 12A provides a mechanism for CIRP withdrawal when a settlement is

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**Application:** In this case, the CoC approved the withdrawal with 100% voting share, and the

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## Parties

- **Judges:** Madan B.…; Harish Chander…
- **Appellants:** Indus Container…
- **Respondents:** TWO WAY CONTAINER…

## Timeline

- **2020-08-17 — CoC Meet…**: The Committee of Creditors (CoC) held its 2nd meeting and passed a resolution for the…
- **2020-09-22 — Hearing…**: Hearing on the application for withdrawal of…

## 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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