# In the matter of Praxis Developers India Pvt. Ltd. CA No. 301-2019 in CP (IB) No. 74-Chd-Hry-2018

> NCLT judgment dated 2019-05-03. Citation: TCN-2019-NCLT-03524. The case involves an application for withdrawal of a Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 3 May 2019
- **Citation:** TCN-2019-NCLT-03524
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/praxis-developers-india-pvt-ltd-ca-no-301-2019-in-cp-ib-no-74-chd-hry-2018-ef67f8af

## Summary

### Background

The case involves an application for withdrawal of a Corporate Insolvency Resolution Process (CIRP) initiated against Praxis Developers India Pvt. Ltd. The CIRP was initiated based on a petition filed by Sandeep Bidani, a Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 06.07.2018, and a moratorium was declared. Sudhir Kalra was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The Committee of Creditors (COC) was formed, and the CIRP timeline was extended. Subsequently, the Financial Creditor filed an application under Section 12A of the Code for withdrawal of the CIRP.

## Facts

Sandeep Bidani, a Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Praxis Developers India Pvt. Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 06.07.2018, leading to a moratorium. Sudhir Kalra was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The Committee of Creditors (COC) was formed, and the CIRP timeline was extended by 90 days effective from 02.01.2019. Sandeep Bidani then filed an application under Section 12A of the Code for withdrawal of the CIRP. The application was not initially accompanied by a bank guarantee for estimated costs. The Corporate Debtor undertook to pay outstanding CIRP expenses

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## Issues and analysis

### Issue 1: Whether the application for withdrawal under Section 12A of the Insolvency and Bankruptcy Code, …

**Ratio:** Regulation 30A (1) is directory and not mandatory, as held by the Supreme Court in

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**Reasoning:** The court relied on the Supreme Court's judgment, which stated that the application for

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**Interpretation:** The interpretation of Regulation 30A (1) is that it is not a strict

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**Application:** In this case, the COC approved the withdrawal with 100% voting share, and the

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## Parties

- **Judges:** M.K. Sh…; Pradeep R.…
- **Appellants:** Sandeep B…
- **Respondents:** Praxis Developers…

## Timeline

- **2018-06-07 — Admission of…**: The petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 was admitted,…
- **2018-07-16 — Appointment…**: Shri Sudhir Kalra was appointed as…

## Legal provisions

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

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