# In the matter of Apple Sponge & Power Ltd. CA-626 & 629-C-II-ND-2019

> NCLT judgment dated 2019-05-16. Citation: TCN-2019-NCLT-03291. The case involves two applications: CA 626/2019 filed by the proposed Interim Resolution…

- **Court:** NCLT
- **Order date:** 16 May 2019
- **Citation:** TCN-2019-NCLT-03291
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/apple-sponge-power-ltd-ca-626-629-c-ii-nd-2019-ede75d69

## Summary

### Background

The case involves two applications: CA 626/2019 filed by the proposed Interim Resolution Professional (IRP) seeking withdrawal of his consent to act as IRP due to family commitments, and CA 629/2019 filed by the Operational Creditor under Section 12A of the Insolvency and Bankruptcy Code for termination of the Corporate Insolvency Resolution (CIR) process due to a settlement with the Corporate Debtor. The IRP's withdrawal letter was communicated to the Financial Creditor before the petition's admission on 08.05.2019. The Financial Creditor's application under Section 7 of the Code had been admitted on 08.05.2019, but no steps were taken. The petitioners executed an agreement on 14.05.2019, where the ex-Directors of the Corporate Debtor undertook to pay the full amount

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## Facts

M/s. Ristro International (P) Ltd. initiated a CIR process against M/s. Apple Sponge & Power Ltd. The Financial Creditor's application under Section 7 was admitted on 08.05.2019. The proposed IRP sought to withdraw his consent due to family commitments, communicating this to the Financial Creditor before the admission date. The Operational Creditor filed an application (CA 629/2019) for termination of the CIR process under Section 12A of the IBC, based on a settlement reached with the Corporate Debtor on 14.05.2019, where the ex-Directors agreed to pay the full amount by June 2019. The COC had not been constituted. The IRP withdrew his consent on 06.05.2018, prior to the admission date.

## Issues and analysis

### Issue 1: Whether the Interim Resolution Professional can withdraw his consent to act as an IRP due to family …

**Ratio:** An IRP can withdraw his consent if there are valid reasons, such as family commitments,

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**Reasoning:** The court acknowledged the IRP's family commitments as a valid reason for withdrawal,

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**Interpretation:** This interprets the IRP's role and responsibilities, allowing for withdrawal

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**Application:** The IRP's withdrawal was allowed because it was based on a genuine reason

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## Parties

- **Judges:** Ina Mal…; SH. V.K. SU…
- **Appellants:** M/s. Ristro…
- **Respondents:** M/s. Apple Sponge…

## Timeline

- **2018-05-06 — IRP Withdraws…**: The Interim Resolution Professional withdrew his consent to act as IRP due to family…
- **2019-05-08 — Admission of Section 7…**: The Financial Creditor's application…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/apple-sponge-power-ltd-ca-626-629-c-ii-nd-2019-ede75d69