# In the matter of Geoshine Mines 2 Metals Ltd.

> NCLT judgment dated 2023-11-21. Citation: TCN-2023-NCLT-00669. The case involves an application filed by the Resolution Professional (RP) under Section 12A of…

- **Court:** NCLT
- **Order date:** 21 Nov 2023
- **Citation:** TCN-2023-NCLT-00669
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/geoshine-mines-2-metals-ltd-1f46e2a1

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 12A of the Insolvency and Bankruptcy Code (IBC) for the withdrawal of the Corporate Insolvency Resolution Process (CIRP) against Geoshine Mines 2 Metals Limited. The application is based on the lack of traceable assets of the Corporate Debtor and the approval of the Committee of Creditors (CoC) to withdraw the CIRP. The CoC resolution was passed with 100% voting in favor of withdrawal.

## Facts

The Resolution Professional (RP) filed an application under Section 12A of the Insolvency and Bankruptcy Code (IBC) to withdraw the Corporate Insolvency Resolution Process (CIRP) against Geoshine Mines 2 Metals Limited. The application was supported by a resolution passed by the Committee of Creditors (CoC) with 100% voting in favor of withdrawal. The CoC's decision was based on the fact that the Corporate Debtor had no traceable assets and that continuing the CIRP would be an additional burden on the CoC without any chance of recoveries. The RP also agreed to forgo the CIRP costs and fees. The agenda for withdrawal was discussed in the 5th CoC meeting held on August 14, 2023. The RP agreed with the CoC to consider the withdrawal under Section 12A of IBC-2016. The

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## Issues and analysis

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

**Ratio:** Section 12A of the IBC, read with Regulation 30A of the IBBI (Insolvency Resolution

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**Reasoning:** The court reasoned that continuing the CIRP would be an additional burden on the CoC

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**Interpretation:** Section 12A provides a mechanism to withdraw CIRP when circumstances warrant,

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**Application:** The court applied the ratio to the specific facts of the case, noting the lack

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Govind Ram…
- **Respondents:** Geoshine Mines 2…

## Timeline

- **2023-08-14 — 5th CoC M…**: The agenda with regard to withdrawal of the CIRP against the Corporate Debtor was taken…
- **2023-11-10 — Previous Ord…**: The RP was directed to remain present in order to verify above CIRP cost as well as his…

## 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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