# In the matter of Forcefox Technologies Pvt. Ltd.

> NCLT judgment dated 2023-03-02. Citation: TCN-2023-NCLT-04392. The case involves an application (IA No.554/2023) filed by the operational creditor under…

- **Court:** NCLT
- **Order date:** 2 Mar 2023
- **Citation:** TCN-2023-NCLT-04392
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/forcefox-technologies-pvt-ltd-063b393b

## Summary

### Background

The case involves an application (IA No.554/2023) filed by the operational creditor under Section 12-A of the IBC for withdrawal of the petition under Section 9 of the Code and for withdrawal of the CIRP, which was previously ordered by the Bench on 01.02.2023. The operational creditor seeks to withdraw the petition. No CoC has been constituted, and the IRP has been paid Rs. 80,000. A settlement agreement dated 06.02.2023 has been placed on record, with Rs. 16 lakhs paid by the Suspended Director as full and final payment.

## Facts

Prime Papyrus Products Pvt Ltd., the operational creditor, initiated CIRP against Forcefox Technologies Private Ltd., the corporate debtor. The CIRP was ordered on 01.02.2023. The operational creditor then filed IA No.554/2023 under Section 12-A of the IBC to withdraw the petition and the CIRP. No CoC had been constituted. The IRP had been paid Rs. 80,000. A settlement agreement dated 06.02.2023 was placed on record, showing that Rs. 16 lakhs had been paid by the Suspended Director as full and final payment. The respondent did not object to the application. This settlement is the key fact that led to the withdrawal of the CIRP.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12-A of the IBC is maintainable by …

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

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**Reasoning:** The court considered the submissions of the learned counsel for the applicant and the

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**Interpretation:** Section 12-A provides a mechanism for withdrawal of CIRP applications,

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**Application:** The court applied Section 12-A to the facts of the case, considering the

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## Parties

- **Judges:** SUBRATA KUM…; Harnam Singh…
- **Appellants:** Prime Papyrus…
- **Respondents:** Forcefox Technolog…
- **Advocates:** GS Bh…; Harkirat…

## Timeline

- **2023-02-01 — CIRP Ord…**: The Bench ordered the commencement of CIRP…
- **2023-02-01 — IRP Fee…**: The court ordered the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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