# In the matter of Sri Yadadri Lifesciences Pvt. Ltd. IA No. 125-2019 in CP (IB) No. 119-9-HDB-2019

> NCLT judgment dated 2020-02-05. Citation: TCN-2020-NCLT-02075. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 5 Feb 2020
- **Citation:** TCN-2020-NCLT-02075
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-yadadri-lifesciences-pvt-ltd-ia-no-125-2019-in-cp-ib-no-119-9-hdb-2019-c72bf2a3

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, by Adroit Financial Services against Sri Yadadri Life Sciences Private Limited, which was admitted by the NCLT on 06.01.2020, initiating the Corporate Insolvency Resolution Process (CIRP). Subsequently, the parties reached a settlement agreement dated 29.01.2020, leading to an application for withdrawal of the petition under Section 12A of the IBC.

## Facts

Adroit Financial Services filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Sri Yadadri Life Sciences Private Limited. The petition was admitted on 06.01.2020, initiating the Corporate Insolvency Resolution Process (CIRP). An Interim Resolution Professional (IRP) was appointed. Subsequently, the parties entered into a settlement agreement on 29.01.2020. The IRP then filed an application under Section 12A of the IBC, seeking to withdraw the petition based on the settlement. The Corporate Debtor agreed to pay the IRP's expenses. The Committee of Creditors had not yet been constituted. The application for withdrawal was supported by Form FA, as required under the regulations.

## Issues and analysis

### Issue 1: Whether the Tribunal can allow the withdrawal of a petition under Section 12A of the Insolvency and …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Regulation 30A of the

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**Reasoning:** The Tribunal reasoned that it has the power under Section 12A of the IBC, read with

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**Interpretation:** Section 12A allows for withdrawal of CIRP applications if the Adjudicating

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**Application:** In this case, the parties reached a settlement agreement, and the IRP filed an

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…; +1 more
- **Appellants:** Adroit Financial…
- **Respondents:** Yadadri Life…

## Timeline

- **2020-01-06 — Petition Ad…**: The Tribunal admitted the petition filed under Section 9 of the IBC, initiating the…
- **2020-01-29 — Settlement Ag…**: The parties entered into a settlement…

## 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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