2019 (8) TMI 973 - Tri - Insolvency and Bankruptcy

Permission for withdrawal of the company petition - Section 12A of IBC Code - HELD THAT - It is clear from section 12A of the Code that the Adjudicating Authority may allow the withdrawal of application admitted under section 7 or section 9 or section 10 on an application filed by the applicant with the approval of 90% voting share of the Committee of Creditors. Thus it is clear if 90% voting share of Committee of Creditors approves application for withdrawal then Adjudicating Authority to allow for withdrawing the application filed under section 7 or section 9 or section 10 of the Code. It is the case of applicant/IRP that 100% voting share of Committee of Creditors approved the withdrawal application. The minutes of the meeting of Committee of Creditors dated 27.06.2019 is annexed at Pg no. 14-18 in the application. Present application is filed by RP before this Tribunal for approval of the withdrawal application. It is clear that Regulation 30A of IB (Corporate Insolvency Resolution Process) regulation 2016, are complied - By virtue of provisions of sec 12 A, Tribunal is empowered to approve the application for withdrawal. This Tribunal by exercising powers under section 12 A of the Code r/w regulations 30A of IBC (Corporate Insolvency Resolution Process) Regulations 2016, approved the application for withdrawal - Application allowed.

Summary

Issues involved:
1. Application for withdrawal of company petition CP(IB) No.439/9/HDB/2018 under section 12A of IBC, 2016.
2. Compliance with regulations for withdrawal of application.
3. Approval process by Committee of Creditors and Adjudicating Authority.
4. Effect of approval on moratorium order and closure of CIRP.

Analysis:
1. The application was filed seeking permission for withdrawal of the company petition CP(IB) No.439/9/HDB/2018 under section 12A of IBC, 2016, after the Operational Creditor and Corporate Debtor agreed to settle the matter for a specified amount.
2. The applicant followed the prescribed procedures under Regulation 30A of IBBI Regulations, 2016, by submitting Form FA for withdrawal accompanied by necessary documents, including a bank guarantee for estimated costs.
3. The Committee of Creditors (COC) approved the withdrawal application with 100% voting share, as evidenced by the minutes of the meeting dated 27.06.2019, fulfilling the requirement set forth in section 12A of the Code.
4. The Adjudicating Authority, in this case, the Tribunal, reviewed the application, the compliance with regulations, and the approval process by the COC. The Tribunal, exercising powers under section 12A of the Code, approved the application for withdrawal.
5. Consequently, the moratorium order passed under section 14 ceased to exist, and the application for withdrawal filed by the Operational Creditor, approved by the COC with 100% voting share, was allowed. As a result, the application filed by the Operational Creditor in CP(IB) No. 439/9/HDB/2018 was withdrawn, and the Corporate Insolvency Resolution Process (CIRP) was closed.