# In the matter of AI-Dua Food Processing Pvt. Ltd. IA-5619-ND-2021 in IB-1803-ND-2018

> NCLT judgment dated 2021-12-08. Citation: TCN-2021-NCLT-00223. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 8 Dec 2021
- **Citation:** TCN-2021-NCLT-00223
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ai-dua-food-processing-pvt-ltd-ia-5619-nd-2021-in-ib-1803-nd-2018-5d8b3204

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor. The Corporate Debtor's counsel stated that all Financial Creditors, constituting the Committee of Creditors (CoC), have given 100% voting and approved the agenda. The application was moved under Section 12A of the IBC Code. The Resolution Professional stated that the matter has been settled and fees have been paid.

## Facts

An application was filed for the withdrawal of the CIRP of the Corporate Debtor. The Corporate Debtor's counsel stated that all Financial Creditors, constituting the CoC, have given 100% voting and approved the agenda. The application was moved under Section 12A of the IBC Code. The Resolution Professional stated that the matter has been settled and fees have been paid. The NCLAT had stayed the CoC meeting and noted a compromise between the parties. The parties were directed to relegate to the Tribunal and file an application under Section 12A of the Code. The key fact is the settlement between the parties, leading to the application for withdrawal of the CIRP.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP process of the Corporate Debtor should be …

**Ratio:** The legal principle applied is that if the parties have reached a settlement and the CoC

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**Reasoning:** The court reasoned that based on the statements made by the Corporate Debtor's counsel

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**Interpretation:** The interpretation of Section 12A of the IBC Code allows for the withdrawal of

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**Application:** The ratio and reasoning apply to the specific facts of the case because the

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## Parties

- **Judges:** DHARMINDER…; Prasanta Kumar…
- **Appellants:** M/s Supreme…
- **Respondents:** M/s Al- Dua Food…

## Timeline

- **2021-10-01 — NCLAT Or…**: Hon'ble NCLAT stayed…
- **2021-11-25 — NCLAT Or…**: NCLAT noted that the matter was…

## 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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