# In the matter of Sharda Ma Enterprises Pvt. Ltd. IA-4704-2022
In Company Petition No. IB-3370(ND)-2019

> NCLT judgment dated 2023-03-15. Citation: TCN-2023-NCLT-04239. The case involves an application (IA-4704/2022) filed in Company Petition No. IB-3370(ND)/2019,…

- **Court:** NCLT
- **Order date:** 15 Mar 2023
- **Citation:** TCN-2023-NCLT-04239
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sharda-ma-enterprises-pvt-ltd-ia-4704-2022-in-company-petition-no-ib-3370nd-2019-0f2bc9f9

## Summary

### Background

The case involves an application (IA-4704/2022) filed in Company Petition No. IB-3370(ND)/2019, concerning the Corporate Insolvency Resolution Process (CIRP) initiated against Sharda Ma Enterprises Pvt Ltd. The CIRP was initiated based on a petition filed by Norvic Shipping North America Inc under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The applicant, Narender Jindal, sought a direction to HDFC Bank, a member of the Committee of Creditors (CoC), to approve Form-FA for withdrawal of the CIRP after a settlement was reached between the Operational Creditor and the Corporate Debtor. The CoC included State Bank of India, ICICI Bank, and HDFC Bank. A resolution for withdrawal of CIRP was placed before the CoC, but HDFC Bank did not participate in the

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## Facts

Norvic Shipping North America Inc initiated CIRP against Sharda Ma Enterprises Pvt Ltd under Section 9 of IBC, 2016. Narender Jindal, a promoter of the Corporate Debtor, filed an application seeking direction to HDFC Bank, a CoC member, to approve Form-FA for CIRP withdrawal after a settlement. The CoC comprised State Bank of India (56.83% voting share), ICICI Bank (23.23%), and HDFC Bank (19.94%). A settlement was reached between the Operational Creditor and Corporate Debtor. The Operational Creditor submitted Form-FA for withdrawal. In a CoC meeting on 23.06.2022, SBI and ICICI Bank (80.06% voting share) voted for withdrawal, but HDFC Bank abstained, citing pending internal approval. The resolution required 90% approval for withdrawal. In a subsequent meeting on

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## Issues and analysis

### Issue 1: Whether this Tribunal can issue a direction to the HDFC Bank, who is one of the members of the …

**Ratio:** The Adjudicating Authority cannot direct a CoC member to approve a withdrawal

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**Reasoning:** The tribunal reasoned that Section 12A of the IBC requires a 90% voting share of the CoC

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**Interpretation:** Section 12A of the IBC mandates a high threshold (90% voting share) for the

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**Application:** In this case, HDFC Bank, as a CoC member, did not approve the withdrawal

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** Narendra…
- **Respondents:** Sharda Ma…; HDFC Bank…
- **Advocates:** K.K.R.…; HARSHIT…; +1 more

## Timeline

- **2019-01-01 — Company Petiti…**: Company Petition No.…
- **2022-04-08 — CIRP Init…**: CIRP initiated against M/s.…

## 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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