# In the matter of Adtech Signages India Pvt. Ltd. IB No. 18-JPR-2018

> NCLT judgment dated 2018-12-17. Citation: TCN-2018-NCLT-00069. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 17 Dec 2018
- **Citation:** TCN-2018-NCLT-00069
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/adtech-signages-india-pvt-ltd-ib-no-18-jpr-2018-16195709

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor. The Financial Creditor, Reliance Commercial Finance Limited, filed the application for withdrawal. The Insolvency Resolution Professional (IRP) submitted a report detailing the sequence of events after the admission of the petition. The first meeting of the Committee of Creditors (CoC) was held on 08.01.2019, where the application for withdrawal was moved. The matter has been settled between the parties.

## Facts

Reliance Commercial Finance Ltd. initiated CIRP against Adtech Signages India Pvt. Ltd. An IRP was appointed and submitted a report detailing events after the CIRP initiation. The first CoC meeting occurred on 08.01.2019. Reliance Commercial Finance Ltd., the Financial Creditor, sought to withdraw the CIRP application due to a settlement with the Corporate Debtor. Reliance Commercial Finance Ltd. is the sole member of the CoC. The Financial Creditor undertook to pay the IRP fees and bear the expenditure. The admission order was made on 30.11.2018. The application for withdrawal was filed in Form FA.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP should be allowed based on the settlement …

**Ratio:** Section 12A of the IBC allows for the withdrawal of CIRP with the approval of 90% of the

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**Reasoning:** The Tribunal considered the settlement between the parties, the Financial Creditor's

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if certain conditions are

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**Application:** In this case, the Financial Creditor, being the sole member of the CoC,

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## Parties

- **Judges:** R. VARADH…
- **Appellants:** Reliance Commercia…
- **Respondents:** Adtech Signages…

## Timeline

- **2018-11-30 — Order of Ad…**: The Tribunal made the order of…
- **2019-01-08 — First CoC M…**: The first meeting of the Committee of Creditors (CoC) was held, where the application for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 17(1) — Management of affairs of corporate debtor by…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-17)

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