# In the matter of Votary Trading Pvt. Ltd. CA(IB)No. 1490-KB-2019 in CP(IB)No. 735-KB-2019

> NCLT judgment dated 2019-12-03. Citation: TCN-2019-NCLT-00353. The case involves an application filed by the Resolution Professional (RP) under Section 12A…

- **Court:** NCLT
- **Order date:** 3 Dec 2019
- **Citation:** TCN-2019-NCLT-00353
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/votary-trading-pvt-ltd-caibno-1490-kb-2019-in-cpibno-735-kb-2019-21231f75

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 12A for the withdrawal of Corporate Insolvency Resolution Process (CIRP) initiated vide CP(IB) No. 735/KB/2019. The withdrawal is sought due to a settlement reached between the Operational Creditor and the Corporate Debtor. The Committee of Creditors (CoC) has approved the withdrawal with a 100% vote share.

## Facts

Samskar Financial Services Pvt. Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against Votary Trading Pvt. Ltd. via CP(IB) No. 735/KB/2019. The Resolution Professional (RP) filed an application (CA(IB) No. 1490/KB/2019) under Section 12A of the Insolvency and Bankruptcy Code (IBC) seeking withdrawal of the CIRP. This withdrawal was based on a settlement reached between Samskar Financial Services Pvt. Ltd. (Operational Creditor) and Votary Trading Pvt. Ltd. (Corporate Debtor). The Committee of Creditors (CoC) approved the withdrawal with a 100% vote share. The RP confirmed that all fees and costs had been discharged. The NCLT Kolkata Bench considered the application and the CoC's approval.

## 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 (IBC) allows for the withdrawal of a

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**Reasoning:** The court reasoned that the settlement between the Operational Creditor and the Corporate

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

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**Application:** In this case, the court applied the principles of Section 12A to the specific

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Samskar Financial…
- **Respondents:** Votary Trading…

## Timeline

- **2019-12-03 — Hearing…**: Hearing held on December…
- **2019-01-01 — CP(IB) No. 735…**: Initiation of Corporate Insolvency Resolution…

## 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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