# In the matter of Sunitti Papers Private Limited IA-1361(KB)2020 & IA-129(KB)2021 in C.P. (IB)-1503(KB)2018

> NCLT judgment dated 2021-02-25. Citation: TCN-2021-NCLT-02922. The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against M/S…

- **Court:** NCLT
- **Order date:** 25 Feb 2021
- **Citation:** TCN-2021-NCLT-02922
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sunitti-papers-private-limited-ia-1361kb2020-ia-129kb2021-in-cp-ib-1503kb2018-1d0f8eb4

## Summary

### Background

The case pertains to the Corporate Insolvency Resolution Process (CIRP) initiated against M/S Sunitti Papers Private Limited. The CIRP was initiated based on an application under Section 7 of the Insolvency and Bankruptcy Code (IBC). Mr. Jitendra Lohia was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed, and several meetings were conducted. Subsequently, the suspended member of the Board of Directors of the Corporate Debtor, Mr. Akhil Agarwal, proposed a settlement with the CoC.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/S Sunitti Papers Private Limited, with Mr. Jitendra Lohia appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The Committee of Creditors (CoC) was formed, and 15 meetings were conducted. Akhil Agarwal, a suspended member of the Board of Directors of Sunitti Papers Private Limited, proposed a settlement with the CoC. The CoC approved the settlement and provided 'Form FA' for withdrawal of the CIRP under Section 12A of the Insolvency and Bankruptcy Code (IBC). The CIRP costs were paid. The Resolution Professional filed an application for withdrawal of the CIRP. The CoC gave 100% consent for withdrawal. The CIRP was initiated vide order

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## Issues and analysis

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

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016 allows for the withdrawal of CIRP

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**Reasoning:** The court considered the settlement proposal by the Corporate Debtor, the consent of the

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**Interpretation:** Section 12A provides a mechanism for settling disputes and withdrawing CIRP if

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**Application:** In this case, the CoC approved the settlement with 100% voting share, and the

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Phoenix Arc…
- **Respondents:** Suniti Papers…; M/S SUNITTI…

## Timeline

- **2018-01-01 — Company Pe…**: Company Petition bearing…
- **2019-11-06 — CIRP Init…**: CIRP initiated against the Corporate Debtor vide order dated 06/11/2019. Mr. Jitendra…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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