# In the matter of PR3 Ritu Lifespaces LLP IA-18(IND) 2021 in TP 213 of 2019 {CP(IB) 389 of 2019}

> NCLT judgment dated 2021-01-22. Citation: TCN-2021-NCLT-03251. IA No. 18 of 2021 was filed under Section 12(A) of the Insolvency & Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 22 Jan 2021
- **Citation:** TCN-2021-NCLT-03251
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pr3-ritu-lifespaces-llp-ia-18ind-2021-in-tp-213-of-2019-cpib-389-of-2019-a498d3e0

## Summary

### Background

IA No. 18 of 2021 was filed under Section 12(A) of the Insolvency & Bankruptcy Code, 2016, seeking withdrawal of the main CP(IB) 389 of 2019, which had been admitted into the Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated by the Authority on 07.01.2021.

## Facts

IA No. 18 of 2021 was filed for the withdrawal of CP(IB) 389 of 2019, which was admitted into Corporate Insolvency Resolution Process (CIRP) on 07.01.2021. The application was filed under Section 12(A) of the Insolvency & Bankruptcy Code, 2016. The basis for the withdrawal was the settlement between the parties and the payment of the due amount. The Committee of Creditors (CoC) had not yet been formed. The court considered these facts and allowed the application, setting aside the CIRP order and releasing the Corporate Debtor from the CIRP. The fact that the CoC was not formed is a key factor in the court's decision to allow the withdrawal.

## Issues and analysis

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

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016 allows for the withdrawal of an

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**Reasoning:** The court reasoned that since the matter had been settled between the parties and the

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**Interpretation:** Section 12A provides a mechanism for withdrawal of CIRP applications. The

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**Application:** In this specific case, the court applied the principle that the absence of a

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Respondents:** Ritus Creation…; PR3 Ritu Lifespace…
- **Advocates:** Navin P…

## Timeline

- **2019-01-01 — CP(IB) F…**: CP(IB) 389 of 2019 was…
- **2021-01-07 — CIRP Admi…**: CP(IB) 389 of 2019 was admitted into Corporate Insolvency Resolution Process (CIRP) by…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12(a) — Time-limit for completion of insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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