# In the matter of Sankalp Paper Industries Pvt. Ltd. IA 31-2020 in C.P. (I.B) No. 606-NCLT-AHM-2018

> NCLT judgment dated 2020-01-09. Citation: TCN-2020-NCLT-02421. The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 9 Jan 2020
- **Citation:** TCN-2020-NCLT-02421
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sankalp-paper-industries-pvt-ltd-ia-31-2020-in-cp-ib-no-606-nclt-ahm-2018-58c37ef5

## Summary

### Background

The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code (IBC) r.w. Regulation 30A of CIRP Regulations, 2016, through the Interim Resolution Professional (IRP) for the withdrawal of Corporate Insolvency Resolution Process (CIRP) initiated vide C.P.(I.B) No. 606/2018. The Operational Creditor conceded to receiving the amount from the Respondent and filed the application through the IRP for withdrawal of the case, having duly executed Form-FA. The CIRP was initiated on 16.12.2019, and the IRP, Mr. Gordhanbhai Ratna Godhani, was appointed, who performed his duties, including making a public announcement. The parties entered into a mutual settlement on 03.01.2020, and the Committee of Creditors (COC) was not yet constituted.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Sankalp Paper Industries Pvt Ltd. The Interim Resolution Professional (IRP) was appointed on 16.12.2019. The Operational Creditor received the amount due from the Respondent, leading to a mutual settlement between the parties on 03.01.2020. The Committee of Creditors (COC) was not yet constituted. An application was filed under Section 12A of the Insolvency and Bankruptcy Code (IBC) for withdrawal of the CIRP. The IRP had already performed his duties, including making a public announcement. The Operational Creditor executed Form-FA for the withdrawal of the case. The application was filed through the IRP.

## Issues and analysis

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

**Ratio:** The ratio is based on the interpretation of Section 12A of the IBC and Regulation 30A of

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**Reasoning:** The court reasoned that since the parties had reached a settlement and the COC was not

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**Interpretation:** Section 12A of the IBC allows for the withdrawal of an application admitted

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**Application:** In this case, the parties reached a settlement, and the COC was not yet

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Respondents:** Sankalp Paper…; Sankalp Papers…

## Timeline

- **2019-12-16 — Admission of C.P.(I.B)…**: The Corporate Insolvency Resolution Process (CIRP) was admitted, and IRP Mr. Gordhanbhai…
- **2020-01-03 — Mutual Sett…**: The parties entered…

## 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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