# In the matter of Praxis Home Retail Pvt. Ltd. IA 1139-2019 in CP(IB)-3018(MB)-2019

> NCLT judgment dated 2020-08-19. Citation: TCN-2020-NCLT-00827. The case pertains to an application filed under Section 12A of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 19 Aug 2020
- **Citation:** TCN-2020-NCLT-00827
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/praxis-home-retail-pvt-ltd-ia-1139-2019-in-cpib-3018mb-2019-215ea193

## Summary

### Background

The case pertains to an application filed under Section 12A of the Insolvency and Bankruptcy Code (IBC) 2016, read with regulation 30A(1)(a) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations 2016. The application sought the court's permission to close the Corporate Insolvency Resolution Process (CIRP) that had been initiated against Praxis Home Retail Ltd. The CIRP was initially ordered by the court on 04.08.2020 in CP(IB)-3018(MB)/2019. The basis for seeking closure was a settlement reached between the Operational Creditor and the Corporate Debtor.

## Facts

An application was filed under Section 12A of the IBC 2016 seeking to close the CIRP against Praxis Home Retail Ltd. The CIRP was initiated by a court order dated 04.08.2020. The reason for seeking closure was a settlement between the Operational Creditor and the Corporate Debtor. The IRP confirmed the settlement and stated that no other claims were received. The IRP also received Rs. 1,00,000/- from the Corporate Debtor for professional fees. Form-FA was filed with the Registry. The Adjudicating Authority considered the submissions and closed the CIRP.

## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) initiated against Praxis Home Retail …

**Ratio:** Section 12A of the IBC 2016 allows for the withdrawal of an application admitted under

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**Reasoning:** The court considered the submissions of the IRP, who confirmed the settlement between the

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**Interpretation:** Section 12A of the IBC provides a mechanism for parties to settle their

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**Application:** In this case, the settlement between the Operational Creditor and the Corporate

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## Parties

- **Judges:** Rajasekha…; RAJESH S…
- **Respondents:** Praxis Home…

## Timeline

- **2020-04-08 — CIRP Initiati…**: The Court ordered the initiation of the Corporate Insolvency Resolution Process (CIRP)…
- **2020-08-19 — Hearing…**: Hearing held regarding the application for…

## 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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