# In the matter of Ninex Developers Limited

> NCLT judgment dated 2024-02-15. Citation: TCN-2024-NCLT-02571. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 15 Feb 2024
- **Citation:** TCN-2024-NCLT-02571
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ninex-developers-limited-ce9c3dc4

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) for Ninex Developers Limited. The CIRP was initiated based on a petition by BDR Finvest Private Limited, a financial creditor. IA 5050/2023 was filed under Section 12A of the Insolvency and Bankruptcy Code (IBC) seeking withdrawal of the CIRP, while IA 4747/2023 was filed under Section 60(5) of the IBC to raise objections to the withdrawal and admit claims of applicants who are homebuyers. The Committee of Creditors (CoC) approved the withdrawal with 92.5% voting share. Reliance Commercial Finance Limited, a financial creditor, objected to the withdrawal, citing concerns about statutory liabilities and the withdrawal plan. Some homebuyers also objected, claiming

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## Facts

1. BDR Finvest Private Limited initiated CIRP against Ninex Developers Limited.
2. IA 5050/2023 was filed seeking withdrawal of CIRP under Section 12A of IBC.
3. IA 4747/2023 was filed to object to the withdrawal and admit claims of homebuyers.
4. The CoC approved the withdrawal with 92.5% voting share.
5. Reliance Commercial Finance Limited objected to the withdrawal, citing concerns about statutory liabilities and the withdrawal plan, claiming a secured financial creditor status with a 6.3% voting share and an outstanding claim of Rs. 25,18,96,136/-.
6. Some homebuyers objected, claiming discrimination in the withdrawal plan, stating they had booked flats and paid booking amounts but their allotments were cancelled.
7. The Resolution Professional (RP) published FORM-G

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should allow the withdrawal of CIRP under Section 12A of the IBC …

**Ratio:** Section 12A of the IBC allows the Adjudicating Authority to permit withdrawal of an

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**Reasoning:** The court reasoned that the CoC, with 92.5% voting shares, approved the withdrawal of

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if a high threshold of

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**Application:** The court applied the ratio by noting that the CoC's approval met the 90%

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## Parties

- **Judges:** SHRI. MAHENDRA…; RAHUL BHA…
- **Appellants:** BDR FINVEST…
- **Respondents:** NINEX DEVELOPERS…

## Timeline

- **2019-07-25 — Initiation…**: The Adjudicating Authority admitted the CP IB 281/PB/2019 and appointed the applicant as…
- **2019-07-30 — Public Annou…**: Issuance of Public Announcement by the Resolution Professional for invitation of claims…

## 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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