# In the matter of Cowtown Infotech Services Private Limited

> NCLT judgment dated 2023-07-06. Citation: TCN-2023-NCLT-02624. The case involves an application (I.A. 2814/2023) filed for the withdrawal of the Corporate…

- **Court:** NCLT
- **Order date:** 6 Jul 2023
- **Citation:** TCN-2023-NCLT-02624
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cowtown-infotech-services-private-limited-67b62c25

## Summary

### Background

The case involves an application (I.A. 2814/2023) filed for the withdrawal of the Corporate Insolvency Resolution Process (CIRP) order dated 06.06.2023, which was passed against the Corporate Debtor. The Corporate Debtor and Operational Creditor entered into consent terms dated 27.06.2023, even before the constitution of the Committee of Creditors (COC). The applicant also enclosed Form FA dated 27.06.2023 for withdrawal of the CIRP proceedings.

## Facts

AB & Co Global Private Limited initiated CIRP against Cowtown Infotech Services Private Limited. An I.A. 2814/2023 was filed by Mr. Raj Kumar Dad, the IRP, under Section 12A of the Insolvency and Bankruptcy Code, seeking withdrawal of the CIRP order dated 06.06.2023. The Corporate Debtor and Operational Creditor had entered into consent terms on 27.06.2023, before the COC was constituted. The applicant submitted that COC approval was not required. Form FA dated 27.06.2023 was enclosed for withdrawal of the CIRP proceedings. The court found it appropriate to allow the application.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP order should be allowed given the consent terms …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code allows for the withdrawal of CIRP under

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**Reasoning:** The court reasoned that since the Corporate Debtor and Operational Creditor had entered

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**Interpretation:** The interpretation of Section 12A in this context suggests that the legislature

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**Application:** The court applied this interpretation to the specific facts of the case, noting

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## Parties

- **Judges:** H.V. Subb…; Madhu S…
- **Respondents:** Cowtown Infotech…

## Timeline

- **2023-06-06 — CIRP Orde…**: CIRP order was passed…
- **2023-06-27 — Consent Ter…**: Corporate Debtor and Operational…

## 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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