# In the matter of Redtopaz Real Estate Private Limited

> NCLT judgment dated 2024-07-08. Citation: TCN-2024-NCLT-01052. The case involves an application (IA-3265/2024) for the withdrawal of an insolvency resolution…

- **Court:** NCLT
- **Order date:** 8 Jul 2024
- **Citation:** TCN-2024-NCLT-01052
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/redtopaz-real-estate-private-limited-9ccb4e10

## Summary

### Background

The case involves an application (IA-3265/2024) for the withdrawal of an insolvency resolution process (IB-667(ND)2019) initiated under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was filed following a resolution passed by the Committee of Creditors (CoC) to allow the withdrawal. The CoC approved the withdrawal proposal under Section 12A of the IBC, based on a proposal from the ex-management of the Corporate Debtor, Red Topaz Real Estate Private Ltd. The proposal included terms for the proposer to contribute certain amounts as interim finance.

## Facts

M/s. Renu Proptech Pvt. Ltd. initiated an insolvency application (IB-667(ND)2019) against M/s. Red Topaz Real Estate Pvt. Ltd. under Section 7 of the IBC, 2016. During the Corporate Insolvency Resolution Process (CIRP), a Committee of Creditors (CoC) was formed. The ex-management of Red Topaz Real Estate Private Ltd. proposed a withdrawal of the CIRP under Section 12A of the IBC. The CoC approved the withdrawal proposal with a 93.03% vote share in its 21st meeting held on 2024-05-27. The withdrawal proposal included terms for the ex-management (referred to as the 'Proposer') to contribute certain amounts as interim finance. The Resolution Professional then filed IA-3265/2024 seeking the Adjudicating Authority's approval for the withdrawal. The voting details and the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of an application admitted under …

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

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**Reasoning:** The court reasoned that the CoC had approved the withdrawal proposal with a 93.03% vote

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**Interpretation:** Section 12A provides a mechanism for withdrawing an insolvency application if a

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**Application:** In this case, the CoC's approval with a 93.03% vote share satisfied the

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## Parties

- **Judges:** Sh. Ashok Kumar…; SUBRATA KUM…
- **Appellants:** M/s. Renu…
- **Respondents:** Red Topaz Real…; M/s. Red Topaz…

## Timeline

- **2016-01-01 — Enactment…**: The Insolvency and…
- **2024-05-27 — 21st CoC M…**: The 21st meeting of the Committee of Creditors (CoC) was held, where the CoC approved the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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