# In the matter of Snehtango Food Products Pvt. Ltd.

> NCLT judgment dated 2023-11-30. Citation: TCN-2023-NCLT-00515. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 30 Nov 2023
- **Citation:** TCN-2023-NCLT-00515
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/snehtango-food-products-pvt-ltd-1a8d64ae

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The application is filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 11 of the NCLT Rules, 2016, and Regulation 30A of the Insolvency Resolution Process for Corporate Persons Regulations, 2016. The Committee of Creditors (COC) has not been formed, and the Operational Creditor and Corporate Debtor have mutually agreed to settle the dispute. The Form FA has been submitted to the Interim Resolution Professional by the Operational Creditor with a request to withdraw the CIRP process under Section 12A IBC, 2016.

## Facts

Victoria International Private Limited initiated a Corporate Insolvency Resolution Process (CIRP) against Snehtango Food Products Private Limited. The Resolution Professional filed an Interlocutory Application (IA) under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to withdraw the CIRP. The application was supported by the fact that the Operational Creditor and the Corporate Debtor had mutually agreed to settle the dispute, and the Committee of Creditors (COC) had not yet been formed. The Operational Creditor submitted Form FA to the Interim Resolution Professional requesting withdrawal of the CIRP. The Adjudicating Authority considered the application and allowed the withdrawal, dismissing the original CIRP petition.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of the Corporate Insolvency Resolution …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, allows for the withdrawal

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**Reasoning:** The court reasoned that since the Committee of Creditors (COC) had not been formed, the

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**Interpretation:** Section 12A of the IBC is interpreted to provide flexibility in allowing the

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**Application:** In this specific case, the Operational Creditor and the Corporate Debtor had

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## Parties

- **Judges:** BIDISHA BA…; ARVIND DEVA…
- **Respondents:** SNEHTANGO FOOD…
- **Advocates:** Tanvi Luha…

## Timeline

- **2022-01-01 — C.P. (IB)/166(…**: Corporate Insolvency…
- **2023-01-01 — IA(I.B.C)/1935…**: Interlocutory Application (IA)…

## 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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