# In the matter of Primrose Infratech Pvt. Ltd.

> NCLT judgment dated 2024-08-28. Citation: TCN-2024-NCLT-00748. The application was filed by the ex-management of the Corporate Debtor seeking to place a…

- **Court:** NCLT
- **Order date:** 28 Aug 2024
- **Citation:** TCN-2024-NCLT-00748
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/primrose-infratech-pvt-ltd-bfa7ced2

## Summary

### Background

The application was filed by the ex-management of the Corporate Debtor seeking to place a settlement proposal under Section 12A of IBC, 2016 before the CoC for voting, and to allow the withdrawal and suspension of CIRP.

## Facts

This application was filed by the ex-management of the Corporate Debtor, seeking to present a settlement proposal under Section 12A of the IBC, 2016, read with Regulation 30A of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, to the Committee of Creditors (CoC) for voting. The ultimate goal was to withdraw and suspend the Corporate Insolvency Resolution Process (CIRP) that had been admitted under Section 9 of the IBC, 2016. An earlier order dated January 23, 2024, by the Adjudicating Authority, directed the Resolution Professional (RP) to convene a CoC meeting to examine a proposal from the SRA. However, this order was set aside by the NCLAT on February 28, 2024, in Company Appeal (AT) (Insolvency) No. 287 of 2024. The applicant's counsel

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## Issues and analysis

### Issue 1: Whether the ex-management of the Corporate Debtor can file a settlement proposal under Section 12A …

**Ratio:** An application for withdrawal under Section 12A of the Code can only be allowed if the

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**Reasoning:** The court noted that previous applications under Section 12A by the ex-Directors were

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**Interpretation:** The court interpreted Section 12A as requiring a 90% voting share from the CoC

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**Application:** Given that the CoC had already approved a Resolution Plan and previous

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## Parties

- **Judges:** Sh. Ashok Kumar…; SUBRATA KUM…
- **Appellants:** Pratham Expofab…; VMS Equipment…; +1 more
- **Respondents:** Primrose Infratech…; NAVNEET…; +3 more
- **Advocates:** P. Na…; Mrinal Harsh…; +9 more

## Timeline

- **January 23, 2024 — Adjudicating Authority…**: Order passed by the Adjudicating Authority directing the RP to call a meeting of CoC for…
- **February 28, 2024 — NCLAT Or…**: Order passed by Hon'ble NCLAT in Company Appeal (AT) (Insolvency) No. 287 of 2024,…

## 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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