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

> NCLT judgment dated 2023-11-30. Citation: TCN-2023-NCLT-00502. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 30 Nov 2023
- **Citation:** TCN-2023-NCLT-00502
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/snehtango-food-products-pvt-ltd-63609a11

## 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. The Operational Creditor and Corporate Debtor have mutually agreed to settle the dispute and submitted Form FA to the Interim Resolution Professional, requesting withdrawal of the CIRP process.

## 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 withdrawal of 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. Form FA was submitted to the Interim Resolution Professional by the Operational Creditor requesting the withdrawal of the CIRP process. The applicant requested the Adjudicating Authority to consider the withdrawal application and take it on record. The present

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

**Ratio:** Section 12A of the IBC, read with Rule 11 of the NCLT Rules, 2016, and Regulation 30A of

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**Reasoning:** The court reasoned that since the Operational Creditor and the Corporate Debtor had

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**Interpretation:** Section 12A of the IBC is interpreted to provide a mechanism for withdrawing

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**Application:** In this case, the court applied the ratio by allowing the withdrawal of the

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## Parties

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

## Timeline

- **2023-11-30 — Hearing…**: Hearing held on November…
- **2023-01-01 — IA Filin…**: IA(I.B.C)/1935(KB)2023 filed by the…

## 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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