# In the matter of Niteen Parulekar Architects Private Limited

> NCLT judgment dated 2023-04-10. Citation: TCN-2023-NCLT-03891. The case involves an application (IA-1281/2023) filed under Section 12A of the Insolvency and…

- **Court:** NCLT
- **Order date:** 10 Apr 2023
- **Citation:** TCN-2023-NCLT-03891
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/niteen-parulekar-architects-private-limited-a462cb55

## Summary

### Background

The case involves an application (IA-1281/2023) filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking the withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor. The CIRP was initially commenced vide an order dated 17.02.2023, admitting a petition filed under Section 7 of the IBC by Insta Capital Pvt. Ltd. Moratorium was declared, and an Interim Resolution Professional (IRP) was appointed. The Financial Creditor subsequently expressed its unwillingness to pursue the CIRP, citing the Corporate Debtor's inoperative status and the relinquishment of its registered office and employees.

## Facts

On 17.02.2023, the NCLT admitted a petition (CP(IB)-519(MB)/2020) filed by Insta Capital Pvt. Ltd. under Section 7 of the IBC, initiating CIRP against the Corporate Debtor. A moratorium was declared, and an Interim Resolution Professional (IRP) was appointed. The IRP made a public announcement in Form A on 24.02.2023. However, on 25.02.2023, the Financial Creditor (Insta Capital Pvt. Ltd.) expressed its unwillingness to pursue the CIRP, citing the Corporate Debtor's inoperative status, closure of its registered office, and employee layoffs. The Financial Creditor then submitted a CIRP withdrawal application in Form FA on 25.02.2023. Consequently, the IRP filed an application (IA-1281/2023) under Section 12A of the IBC for the withdrawal of the CIRP. The IRP confirmed

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## Issues and analysis

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

**Ratio:** Section 12A of the IBC allows for the withdrawal of CIRP with the approval of 90% voting

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**Reasoning:** The court reasoned that the Financial Creditor, having initiated the CIRP, now seeks its

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**Interpretation:** Section 12A is interpreted to allow for withdrawal even without a CoC if the

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**Application:** The ratio and reasoning are applied to the specific facts by allowing the

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Appellants:** Insta Capital…
- **Respondents:** Niteen Parulekar…

## Timeline

- **2020-01-01 — Petition…**: CP(IB)-519(MB)/2020 filed…
- **2023-02-17 — CIRP Commen…**: Petition admitted, CIRP commenced,…

## 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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