# In the matter of VVA Developers Private Limited C.A. 2288(PB)-2019 in (IB)691(PB)-2018

> NCLT judgment dated 2019-10-31. Citation: TCN-2019-NCLT-00770. The case involves an application filed by the Petitioner Financial Creditor, IFCI Venture…

- **Court:** NCLT
- **Order date:** 31 Oct 2019
- **Citation:** TCN-2019-NCLT-00770
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vva-developers-private-limited-ca-2288pb-2019-in-ib691pb-2018-8909c8a2

## Summary

### Background

The case involves an application filed by the Petitioner Financial Creditor, IFCI Venture Capital Funds Limited, under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking permission to withdraw the original petition against VVA Developers Private Limited. The withdrawal is based on a settlement reached between the applicant financial creditor and the promoters of the corporate debtor, which was approved by the Committee of Creditors with a majority vote. The Corporate Insolvency Resolution Process (CIRP) was initiated against VVA Developers Private Limited on 06.06.2019, following the admission of Company Petition No. (IB)-691 (PB) /2018 filed by the applicant financial creditor under Section 7 of the Code.

## Facts

IFCI Venture Capital Funds Limited initiated Corporate Insolvency Resolution Process (CIRP) against VVA Developers Private Limited by filing Company Petition No. (IB)-691 (PB) /2018 under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted on 06.06.2019. Subsequently, IFCI Venture Capital Funds Limited and the promoters of VVA Developers Private Limited reached a settlement. In the fourth meeting of the Committee of Creditors (CoC) convened on 14.10.2019, IFCI Venture Capital Funds Limited informed the CoC about the settlement agreement dated 01.10.2019. The resolution for withdrawal of the Insolvency Resolution Process was put to vote and passed with 98.07% majority votes. The petitioner financial creditor filed the required application in

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of an application admitted under …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The court reasoned that the provisions of Section 12A of the Code make it clear that with

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

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**Application:** In this case, the Committee of Creditors passed a resolution with 98.07% voting

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## Parties

- **Judges:** DEEPTI M…; S. K. MOH…
- **Appellants:** IFCI Venture…
- **Respondents:** VVA Developers…
- **Advocates:** Apoorv Ag…; Abhimanyu J…; +6 more

## Timeline

- **2019-06-06 — Initiation…**: Corporate Insolvency Resolution Process against VVA Developers Private Limited was…
- **2019-10-01 — Settlement Ag…**: Settlement agreement was entered into between the applicant financial creditor and the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12 — Time-limit for completion of insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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