# In the matter of Irshad Khan
Vs.
Ajai Kumar Singh & Ors. Company Appeal (AT) (INS) No. 449 of 2021

> NCLAT judgment dated 2022-05-05. Citation: TCN-2022-NCLAT-00504. The case involves an appeal against an order passed by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 5 May 2022
- **Citation:** TCN-2022-NCLAT-00504
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/irshad-khan-vs-ajai-kumar-singh-ors-company-appeal-e4bf9efd

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench V, regarding IA No. 1043/2021 in CP (IB) No. 296/ND/2020 in Comp App (AT) (Ins.) No. 449 of 2021. The Appellant/Applicant was dissatisfied with the impugned order. The Adjudicating Authority had observed that the Committee of Creditors (CoC) had not been constituted and that the Interim Resolution Professional (IRP) had not properly verified the claims of creditors before waiting for a settlement between the Applicant and the Corporate Debtor. The Adjudicating Authority rejected the Interlocutory Application submitted by the IRP to permit the Applicant/Appellant to withdraw the Application.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated on 04.02.2021. A public announcement was made on 09.02.2021, with 19.02.2021 as the last day for submission of claims. On 20.02.2021, a settlement was reached between the Corporate Debtor and the Operational Creditor. A withdrawal application under Section 12A of the Insolvency and Bankruptcy Code (IBC) was filed on 22.02.2021. The Adjudicating Authority rejected the withdrawal application, stating that the Committee of Creditors (CoC) was not constituted and the Interim Resolution Professional (IRP) did not verify the claims of creditors before the settlement. The IRP had received a claim from a financial creditor exceeding Rs. One Crore. The Adjudicating Authority observed that the IRP should have

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's rejection of the withdrawal application (IA No. 1043/2021) was …

**Ratio:** The primary objective of the Insolvency and Bankruptcy Code (IBC) is resolution, not

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**Reasoning:** The Appellate Tribunal reasoned that the Adjudicating Authority's decision to dismiss the

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**Interpretation:** Section 12A of the IBC and Regulation 30A of the IBBI Regulations should be

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**Application:** In this case, the settlement between the Corporate Debtor and the Operational

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## Parties

- **Judges:** M. Venu…; Ashok Kumar…
- **Appellants:** Irshad…
- **Respondents:** Ajai Kumar…

## Timeline

- **2021-02-04 — CIRP Init…**: Corporate Insolvency…
- **2021-02-09 — Public Annou…**: Public announcement…

## 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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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/irshad-khan-vs-ajai-kumar-singh-ors-company-appeal-e4bf9efd