# In the matter of Sakura Signs Pvt. Ltd. IA-2247-MB-2020 In CP(IB)-2278-MB-2019

> NCLT judgment dated 2020-12-18. Citation: TCN-2020-NCLT-00052. The case involves an application (IA/2247/MB/2020) filed by the Operational Creditor under…

- **Court:** NCLT
- **Order date:** 18 Dec 2020
- **Citation:** TCN-2020-NCLT-00052
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sakura-signs-pvt-ltd-ia-2247-mb-2020-in-cpib-2278-mb-2019-0225ea3d

## Summary

### Background

The case involves an application (IA/2247/MB/2020) filed by the Operational Creditor under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking withdrawal of a petition for Corporate Insolvency Resolution Process (CIRP). The CIRP admission order was passed on 2020-09-29. The Committee of Creditors (CoC) approved the withdrawal of the petition. A mutual settlement was reached between the applicant and the Corporate Debtor (CD), evidenced by a settlement deed dated 2020-10-31. The applicant submitted the CoC's approval for withdrawal, along with a demand draft for Rs 125,000 towards the estimated cost of CIRP.

## Facts

The Operational Creditor filed an application (IA/2247/MB/2020) under Section 12A of the IBC seeking to withdraw the CIRP petition against Sakura Signs Pvt. Ltd. The CIRP had been admitted on 2020-09-29. The CoC approved the withdrawal based on a mutual settlement between the applicant and the Corporate Debtor, as evidenced by a settlement deed dated 2020-10-31. The applicant also submitted a demand draft for Rs 125,000 towards the estimated cost of CIRP. The CoC considered that the applicant had complied with all applicable provisions of the IBC, 2016, and related rules and regulations. The Resolution Professional (RP) was Mr. Ajay Marathe.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP under Section 12A of the IBC should be allowed, …

**Ratio:** Section 12A of the IBC, read with Regulation 30A of the IBBI (Insolvency Resolution

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**Reasoning:** The court reasoned that the CoC had approved the withdrawal of the CIRP based on a mutual

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if the CoC approves,

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**Application:** In this case, the CoC approved the withdrawal based on a mutual settlement. The

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## Parties

- **Judges:** Chandra Bha…; SUCHITRAKAN…
- **Appellants:** Ajay Ma…
- **Respondents:** Sakura Signs Pvt.…; Sakura Signs Pvt.…

## Timeline

- **2020-09-29 — Admission o…**: The admission order of…
- **2020-10-31 — Settlemen…**: A mutual settlement deed was dated…

## 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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