# In the matter of Kumar Distributors Pvt. Ltd. IA-961 & 1159-ND-2022 in IB-990-ND-2018

> NCLT judgment dated 2022-03-14. Citation: TCN-2022-NCLT-03766. The case involves an application for withdrawal of a Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 14 Mar 2022
- **Citation:** TCN-2022-NCLT-03766
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kumar-distributors-pvt-ltd-ia-961-1159-nd-2022-in-ib-990-nd-2018-d7fa3b86

## Summary

### Background

The case involves an application for withdrawal of a Corporate Insolvency Resolution Process (CIRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016. The IRP filed IA No. 1159/2022 for withdrawal of CP/IB/990/ND/2018, stating that the matter has been settled and the Committee of Creditors (CoC) has not been constituted yet. One claim of approximately Rs. 19 Crore has been received from the State Bank of India.

## Facts

Micromax Informatics Ltd. initiated a Corporate Insolvency Resolution Process (CIRP) against Kumar Distributors Pvt Ltd under Section 9 of the IBC. The Interim Resolution Professional (IRP) filed IA No. 1159/2022 seeking withdrawal of the CIRP under Section 12A of the IBC, stating that the matter has been settled. The Committee of Creditors (CoC) has not been constituted. The State Bank of India has submitted a claim of approximately Rs. 19 Crore. An operational creditor also filed I.A. No. 961/ND/2022 stating that the matter has been settled. The IRP dues have been cleared.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC should be allowed …

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

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**Reasoning:** The court reasoned that since the matter has been settled and the CoC has not been

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**Interpretation:** Section 12A is interpreted to provide flexibility in allowing withdrawal of

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**Application:** The ratio and reasoning are applied to the facts of the case, where the IRP has

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## Parties

- **Judges:** DHARMINDER…; SUMITAPURKA…
- **Appellants:** Micromax Informati…
- **Respondents:** Kumar Distributors…

## Timeline

- **N/A — Initiation…**: Micromax Informatics Ltd. initiated CIRP against Kumar Distributors Pvt Ltd under Section…
- **2022-03-14 — Order Del…**: Order delivered on 14.03.2022…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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