2019 (10) TMI 214 - Tri - Insolvency and Bankruptcy

Permission for withdrawal of the company petition - section 12A of IBC, 2016 - 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 withdrawal the application filed under section 7 or section 9 or section 10 of the Code. 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 2015, are complied - By virtue of provisions of sec 12A, Tribunal is empowered to approve the application for withdrawal. Application allowed.

Summary

Issues:
1. Application for withdrawal of company petition filed under section 9 of the Insolvency and Bankruptcy Code.
2. Compliance with Section 12A of the Code for withdrawal of application.
3. Approval process by Committee of Creditors for withdrawal application.
4. Tribunal's authority to approve withdrawal application under Section 12A.

Analysis:
1. The application was filed seeking permission to withdraw the company petition CP(IB) NO.671/9/HDB/2018, which was originally filed under section 9 of the Insolvency and Bankruptcy Code (IBC).

2. The Applicant/RP initiated Corporate Insolvency Resolution Process (CIRP) proceedings and constituted the Committee of Creditors with two Operational Creditors whose claims were admitted. The RP filed necessary reports and certificates as required under the regulations.

3. The Committee of Creditors approved the withdrawal application with 100% voting share, complying with the provisions of Section 12A of the IBC. The RP submitted the application to the Adjudicating Authority for approval, as mandated by the regulations.

4. The Tribunal, exercising its powers under Section 12A of the IBC read with regulations 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, approved the withdrawal application. Consequently, the moratorium order was lifted, and the CIRP was closed.

In conclusion, the Tribunal granted approval for the withdrawal of the company petition based on the compliance with Section 12A of the IBC, the approval by the Committee of Creditors, and the submission of necessary documents and certificates. The Tribunal's decision effectively ended the CIRP for the Corporate Debtor, as the withdrawal application was successfully processed and approved.