# In the matter of Codeblue Clothing Pvt. Ltd.

> NCLT judgment dated 2024-01-03. Citation: TCN-2024-NCLT-03334. The application was filed under Section 12A of the Code on behalf of the IRP seeking withdrawal…

- **Court:** NCLT
- **Order date:** 3 Jan 2024
- **Citation:** TCN-2024-NCLT-03334
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/codeblue-clothing-pvt-ltd-e95659f9

## Summary

### Background

The application was filed under Section 12A of the Code on behalf of the IRP seeking withdrawal of the main company petition bearing CP (IB) No.46/ALD/2020, in which the CIRP was triggered vide an order dated December 21, 2023. After the initiation of CIRP against the Corporate Debtor, a publication was made in the newspaper vide Form A inviting claims. The last date for receiving claims was January 4, 2024.

## Facts

The Corporate Debtor was undergoing CIRP based on an order dated December 21, 2023. The IRP made a publication inviting claims with a deadline of January 4, 2024. However, before the deadline, on December 26, 2023, a settlement was reached between the Financial Creditor and the Corporate Debtor, with the Corporate Debtor paying Rs. 50 lakh to the Financial Creditor. The IRP then filed an application under Section 12A of the Code for withdrawal of the CIRP. The CIRP cost, including publication expenses, was paid. Both the Financial Creditor and the Corporate Debtor supported the withdrawal.

## Issues and analysis

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

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

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**Reasoning:** The court considered the averments made in the application, the statement made by the

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**Interpretation:** Section 12A provides a mechanism for parties to settle their disputes and

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**Application:** In this case, a settlement was reached between the Financial Creditor and the

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## Parties

- **Judges:** Praveen…; RAJEEV ME…
- **Respondents:** CODEBLUE CLOTHINGP…
- **Advocates:** Sanket…; Aditi S…; +2 more

## Timeline

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

## 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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