# In the matter of Vinay Wire and Poly Products Pvt. Ltd.

> NCLT judgment dated 2023-08-29. Citation: TCN-2023-NCLT-01866. The case involves an application for withdrawal of a company petition under Section 12A of the…

- **Court:** NCLT
- **Order date:** 29 Aug 2023
- **Citation:** TCN-2023-NCLT-01866
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vinay-wire-and-poly-products-pvt-ltd-50fa95f3

## Summary

### Background

The case involves an application for withdrawal of a company petition under Section 12A of the Insolvency and Bankruptcy Code (IBC). The initial petition, CP (IB) No.359/ALD/2019, was filed under Section 9 of the IBC and admitted on 06.07.2023. The Interim Resolution Professional (IRP) verified a claim from the Financial Creditor, Bank of Baroda, amounting to Rs.38.68 Crore. Before the constitution of the Committee of Creditors (CoC), the IRP received an email from the Operational Creditor informing that a settlement had been reached with the Corporate Debtor, leading to the withdrawal application.

## Facts

A company petition CP (IB) No.359/ALD/2019 was filed under Section 9 of the IBC and admitted on 06.07.2023. The IRP verified a claim from Bank of Baroda amounting to Rs.38.68 Crore. The Operational Creditor and Corporate Debtor reached a settlement, leading to an application for withdrawal under Section 12A. The Financial Creditor, Bank of Baroda, was notified and responded with no objection to the withdrawal via email dated 21.08.2023. The claim from the Bank of Baroda was received by the IRP on 25.07.2023. The email communication from the Operational Creditor informing the IRP about the settlement was dated 01.08.2023.

## Issues and analysis

### Issue 1: Whether the application for withdrawal under Section 12A of the IBC should be allowed given the …

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

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**Reasoning:** The court considered the email communication from the Financial Creditor, Bank of Baroda,

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**Interpretation:** Section 12A is interpreted to allow withdrawal when a settlement is reached and

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

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## Parties

- **Judges:** H.V. Subb…; Ashish…
- **Respondents:** Prayag Polytech…
- **Advocates:** Vipul G…; Nirti…; +3 more

## Timeline

- **2019-01-01 — Filing of CP (IB)…**: The company petition CP (IB)…
- **2023-07-06 — Admission of CP (IB)…**: The company petition CP (IB)…

## 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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