2019 (12) TMI 129 - Tri - Insolvency and Bankruptcy

Permission to withdraw the Application which is admitted u/s 7 of the IBC Code, 2016 - Sec 12A of I B 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. Present application is filed by RP before this Tribunal for approval of the withdrawal of application. It is clear that Regulation 30A of IBC (Corporate Insolvency Resolution Process) regulation 2016, are complied - By virtue of provisions of sec 12A, Tribunal is empowered to approve the application for withdrawal. The application filed by RP is to be allowed and moratorium order passed under section 14 shall cease to exist.

Summary

Issues involved:
1. Application for withdrawal of insolvency petition under Section 12A of IBC Code, 2016.
2. Compliance with Regulation 30A of Insolvency Resolution Process for Corporate Persons Regulations, 2016.
3. Approval of withdrawal application by Committee of Creditors with 100% voting share.
4. Tribunal's power to approve withdrawal application under Section 12A of the Code.

Analysis:
1. The Resolution Professional filed an application seeking permission to withdraw the insolvency petition under Section 12A of the IBC Code, 2016, on behalf of Axis Bank Ltd, a Financial Creditor. The application also requested condonation of a 9-day delay in filing. The petition was admitted earlier under Section 7 of the IBC Code, 2016.

2. The application detailed that the Financial Creditor submitted a Form FA for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under Regulation 30A. The Financial Creditor had accepted a settlement proposal from one of the promoters of the corporate debtor, agreeing to cover the Insolvency Resolution Process Cost incurred by the Resolution Professional.

3. The Committee of Creditors unanimously approved the withdrawal application with 100% voting share in the 3rd CoC meeting. The Resolution Professional requested the Tribunal to condone the delay and submitted the necessary documentation for withdrawal approval.

4. The Tribunal analyzed Section 12A of the Code, which allows withdrawal of applications admitted under Section 7, 9, or 10 with 90% voting share approval of the Committee of Creditors. Regulation 30A outlines the procedure for withdrawal, including submission of Form FA and approval by the CoC. The Tribunal confirmed that the CoC's 100% voting share approval aligned with the requirements.

5. By exercising powers under Section 12A of the Code read with Regulation 30A, the Tribunal approved the withdrawal application, allowing the Financial Creditor's application to be withdrawn. Consequently, the moratorium order was lifted, and the Corporate Insolvency Resolution Process was closed as per the Tribunal's decision.