# In the matter of Codeblue Clothing Pvt. Ltd.

> NCLT judgment dated 2024-01-03. Citation: TCN-2024-NCLT-03330. The application was filed under Section 12A of the Insolvency and Bankruptcy Code (IBC) seeking…

- **Court:** NCLT
- **Order date:** 3 Jan 2024
- **Citation:** TCN-2024-NCLT-03330
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/codeblue-clothing-pvt-ltd-09606f76

## Summary

### Background

The application was filed under Section 12A of the Insolvency and Bankruptcy Code (IBC) seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor. The CIRP was triggered by an order dated December 21, 2023, in CP (IB) No.46/ALD/2020. Following the initiation of CIRP, a public announcement was made inviting claims from creditors, with a deadline of January 4, 2024.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Codeblue Clothing Pvt Ltd via an order dated December 21, 2023. Following the initiation, a public announcement was made to invite claims from creditors, with a deadline of January 4, 2024. However, on December 26, 2023, a settlement was reached between Abhinav Agarwal (Financial Creditor) and Codeblue Clothing Pvt Ltd (Corporate Debtor), where the Corporate Debtor agreed to pay Rs. 50 lakh to the Financial Creditor. This amount was duly paid. The IRP filed an application under Section 12A of the IBC seeking withdrawal of the CIRP, supported by both the Financial Creditor and the Corporate Debtor. The CIRP cost, including publication expenses, was also paid. Form FA was executed on December 26,

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

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

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**Reasoning:** The court reasoned that a settlement had been reached between the Financial Creditor and

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**Interpretation:** Section 12A provides a mechanism for parties to resolve their disputes amicably

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**Application:** In this case, the settlement between Abhinav Agarwal and Codeblue Clothing Pvt

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## Parties

- **Judges:** Praveen…; RAJEEV ME…
- **Respondents:** CODEBLUE CLOTHINGP…

## Timeline

- **2020-01-01 — CP (IB)…**: CP (IB) No.46/ALD/2020…
- **2023-12-21 — CIRP Trig…**: CIRP was triggered vide an…

## 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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