# In the matter of LIfespan Biotech Pvt. Ltd. IA No. 35-2020 in TP 73-2019 {CP (I B) No. 317-9-NCLT-AHM-2018}

> NCLT judgment dated 2020-02-27. Citation: TCN-2020-NCLT-01789. The case involves an Interlocutory Application (IA 35 of 2020) filed in TP 73 of 2019 [CP(IB)…

- **Court:** NCLT
- **Order date:** 27 Feb 2020
- **Citation:** TCN-2020-NCLT-01789
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lifespan-biotech-pvt-ltd-ia-no-35-2020-in-tp-73-2019-cp-i-b-no-317-9-nclt-ahm-20-cdfc9534

## Summary

### Background

The case involves an Interlocutory Application (IA 35 of 2020) filed in TP 73 of 2019 [CP(IB) 317 of 2018] under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Lifespan Biotech Pvt. Ltd. The CIRP was initiated based on a petition by Kwality Industries (Bhopal) Limited. The Resolution Professional (RP) filed the application after a settlement was reached between the Corporate Debtor and the Financial Creditors. The Committee of Creditors (CoC) approved the settlement with the requisite majority and recommended recalling the CIRP.

## Facts

Kwality Industries (Bhopal) Limited initiated Corporate Insolvency Resolution Process (CIRP) against Lifespan Biotech Pvt. Ltd. The CIRP was admitted, and a Resolution Professional (RP) was appointed. Subsequently, a settlement was reached between Lifespan Biotech and its Financial Creditors. The Committee of Creditors (CoC) approved the settlement with a 90.71% majority. The RP then filed an application under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of the CIRP. The Financial Creditors, including Bank of India, Bank of Maharashtra, and SIDBI, agreed to a One Time Settlement (OTS). Corporation Bank did not agree to the OTS, but its voting percentage was less than 10%. Lifespan Biotech made payments to its other creditors, including

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The court reasoned that the application for withdrawal was filed in conformity with the

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if a settlement is

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**Application:** In this case, the court applied Section 12A and Regulation 30A to the facts

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Kwality Industries…
- **Respondents:** Lifespan Biotech…; M/s. Lifespan…
- **Advocates:** Mrugesh A…; Love. S.…; +1 more

## Timeline

- **2019-05-02 — CIRP Initiati…**: Tribunal passed an order initiating CIRP…
- **2020-01-20 — CoC Meet…**: Committee of Creditors (CoC) held its eighth meeting and approved the settlement proposal…

## 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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