# In the matter of Web Date Systems Pvt. Ltd. IA (IB) No. 1366-KB-2020 in CP (IB) No. 288-KB-2019

> NCLT judgment dated 2020-12-14. Citation: TCN-2020-NCLT-00093. The case involves an application (IA(IB) No. 1366/KB/2020) filed by the Interim Resolution…

- **Court:** NCLT
- **Order date:** 14 Dec 2020
- **Citation:** TCN-2020-NCLT-00093
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/web-date-systems-pvt-ltd-ia-ib-no-1366-kb-2020-in-cp-ib-no-288-kb-2019-2b496e4f

## Summary

### Background

The case involves an application (IA(IB) No. 1366/KB/2020) filed by the Interim Resolution Professional (IRP), Mr. Rajesh Lihala, under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking leave for closure and withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against Aithent Technologies Pvt. Ltd. The CIRP was initially commenced on 13/03/2020. An appeal was filed before the NCLAT, which initially directed the IRP to hold on the constitution of the Committee of Creditors (CoC), but later withdrew the interim order. The IRP then constituted the CoC, and a meeting was convened. The applicant informed the CoC that a settlement had been reached between the Operational Creditor and the Corporate Debtor, leading to the application for

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Aithent Technologies Pvt. Ltd. on 13/03/2020. Mr. Rajesh Lihala was appointed as the Interim Resolution Professional (IRP). A public announcement was issued on 18/03/2020. An appeal was filed before the NCLAT, which initially directed the IRP to hold on the constitution of the Committee of Creditors (CoC) on 15/05/2020, but this order was withdrawn on 05/11/2020. The IRP constituted the CoC on 07/11/2020. The first CoC meeting was convened on 13/11/2020 and adjourned. The adjourned CoC meeting was reconvened on 23/11/2020, during which the IRP informed the CoC of a settlement between the Operational Creditor and the Corporate Debtor. The Operational Creditor sought withdrawal of the CIRP and

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the Insolvency and …

**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 application for withdrawal with 100%

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**Interpretation:** Section 12A is interpreted to facilitate settlements between the debtor and

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

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** Aithent Technologi…

## Timeline

- **2020-03-13 — CIRP Commen…**: CIRP was commenced against…
- **2020-03-18 — Public Annou…**: Public announcement was…

## 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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