# 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-00360. 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-00360
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/votary-trading-pvt-ltd-caibno-1490-kb-2019-in-cpibno-735-kb-2019-83d2bd3a

## 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.

## Facts

Samskar Financial Services Pvt. Ltd. initiated a Corporate Insolvency Resolution Process (CIRP) against Votary Trading Pvt. Ltd. via CP(IB) No. 735/KB/2019. Subsequently, a settlement was reached between Samskar Financial Services Pvt. Ltd. (the Operational Creditor) and Votary Trading Pvt. Ltd. (the Corporate Debtor). The Resolution Professional (RP) filed an application under Section 12A of the Insolvency and Bankruptcy Code (IBC) to withdraw the CIRP. The Committee of Creditors (CoC) approved the withdrawal with a 100% vote share. The RP's fees and costs were already discharged. The court considered the settlement and the CoC's approval as sufficient grounds for allowing the withdrawal of the CIRP.

## 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 principle of Section 12A by considering the

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## Parties

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

## Timeline

- **2019-12-03 — Hearing…**: Hearing held on December…
- **2019-01-01 — Filing of CA(IB) No.…**: Application filed by the RP u/s 12A for…

## 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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