# In the matter of S T Construction Pvt. Ltd.

> NCLT judgment dated 2023-08-08. Citation: TCN-2023-NCLT-02129. The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 8 Aug 2023
- **Citation:** TCN-2023-NCLT-02129
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/s-t-construction-pvt-ltd-ee34f7e1

## Summary

### Background

The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking withdrawal of a Section 9 application. The Committee of Creditors (CoC), consisting of two financial creditors, voted with a 98.47% majority in favor of the withdrawal. The Interim Resolution Professional (IRP) supported the withdrawal application. The dues of one CoC member, IndusInd Bank, have been fully paid, and a settlement has been agreed upon with Canara Bank for restructuring the loan.

## Facts

JMS Steel & Power Corporation initiated a Section 9 application under the IBC. The CoC, consisting of IndusInd Bank and Canara Bank, voted with 98.47% majority to withdraw the application under Section 12A of IBC. IndusInd Bank's dues were fully paid. Canara Bank agreed to a settlement for loan restructuring and consented to the withdrawal. The IRP supported the withdrawal application. All stakeholders confirmed the intention to withdraw the Section 9 application. The Adjudicating Authority considered these facts and the circumstances of the matter before approving the withdrawal.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should allow the withdrawal of the Section 9 application under …

**Ratio:** Section 12A of the IBC allows for the withdrawal of an application admitted under Section

…

**Reasoning:** The CoC, consisting of two financial creditors, voted with a 98.47% majority in favor of

…

**Interpretation:** Section 12A provides a mechanism for resolving insolvency proceedings outside

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**Application:** In this case, the CoC's overwhelming support for the withdrawal, coupled with

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## Parties

- **Judges:** P.S.N. P…; BINOD KUMAR…
- **Appellants:** JMS Steel & Power…
- **Respondents:** ST Constructions…
- **Advocates:** Gautam Si…; Rajat Cha…; +3 more

## Timeline

- **2023-08-11 — Order Del…**: Order delivered by the National Company Law Tribunal, New Delhi, allowing the withdrawal…

## 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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