# In the matter of Aarti Suitings Pvt. Ltd.

> NCLT judgment dated 2023-03-27. Citation: TCN-2023-NCLT-04048. The case involves an application under Section 12A of the IBC, 2016, for the withdrawal of the…

- **Court:** NCLT
- **Order date:** 27 Mar 2023
- **Citation:** TCN-2023-NCLT-04048
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aarti-suitings-pvt-ltd-964eb872

## Summary

### Background

The case involves an application under Section 12A of the IBC, 2016, for the withdrawal of the ongoing Corporate Insolvency Resolution Process (CIRP) initiated against M/s Aarti Suitings Private Limited. The CIRP was initiated based on an application under Section 9 of the IBC, 2016. The Committee of Creditors (CoC), holding 97.34% of voting rights, approved the withdrawal of the CIRP.

## Facts

M/s Sangam India Limited initiated CIRP against M/s Aarti Suitings Private Limited under Section 9 of IBC, 2016. The CIRP was admitted on 2021-06-17. Subsequently, M/s Sangam India Limited sought to withdraw the CIRP, submitting Form FA to the Resolution Professional (RP) on 2023-01-23. The CoC of Aarti Suitings Private Limited, holding 97.34% voting rights, approved the withdrawal. The RP then filed an application under Section 12A of the IBC, 2016, for withdrawal of the CIRP. The NCLT considered the application and the CoC's approval.

## Issues and analysis

### Issue 1: Whether the application under Section 12A of the IBC, 2016, for withdrawal of the CIRP against M/s …

**Ratio:** Section 12A of the IBC, 2016, allows for the withdrawal of CIRP with the approval of 90%

…

**Reasoning:** The CoC approved the withdrawal of CIRP with 97.34% voting rights, which exceeds the 90%

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**Interpretation:** Section 12A provides a mechanism for the withdrawal of CIRP if a substantial

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**Application:** In this case, the CoC's approval with 97.34% voting rights satisfies the

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** Sangam (India)…
- **Respondents:** Aarti Suitings…
- **Advocates:** Anubha…; Amol…

## Timeline

- **2021-06-17 — CIRP Init…**: CIRP initiated against M/s…
- **2023-01-23 — Form FA Sub…**: RP received Form FA seeking withdrawal of…

## 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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