# 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-00343. 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-00343
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/votary-trading-pvt-ltd-caibno-1490-kb-2019-in-cpibno-735-kb-2019-b1d07535

## 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 via 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. Subsequently, a settlement was reached between Samskar Financial Services Pvt. Ltd. (Operational Creditor) and Votary Trading Pvt. Ltd. (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 confirmed that all fees and costs have been discharged. The application was filed under CA(IB) No. 1490/KB/2019.

## 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 CIRP

…

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

…

**Interpretation:** Section 12A is interpreted to facilitate settlements between parties involved

…

**Application:** In this case, the Operational Creditor and the Corporate Debtor reached a

…

## Parties

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

## Timeline

- **2019-12-03 — Hearing…**: Hearing held on December…
- **2019-01-01 — Filing of App…**: RP filed an application under Section 12A…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/votary-trading-pvt-ltd-caibno-1490-kb-2019-in-cpibno-735-kb-2019-b1d07535