# In the matter of Shri Alok Kaushik, RP of  Cheema Spintex Ltd Vs. Cheema Spintex Ltd & Ors. Company Appeal (AT)(Insolvency)No.896 of 2022

> NCLAT judgment dated 2022-09-05. Citation: TCN-2022-NCLAT-00233. This Company Appeal (AT)(Insolvency) No. 896 of 2022 arises from an order dated 30.05.2022…

- **Court:** NCLAT
- **Order date:** 5 Sept 2022
- **Citation:** TCN-2022-NCLAT-00233
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/shri-alok-kaushik-rp-of-cheema-spintex-ltd-vs-cheema-spintex-ltd-ors-company-app-13ee81fb

## Summary

### Background

This Company Appeal (AT)(Insolvency) No. 896 of 2022 arises from an order dated 30.05.2022 passed by the Adjudicating Authority, National Company Law Tribunal, Chandigarh Bench, in IA Nos. 510/2021, 527/2021, 591/2021 & 605/2021 in C.P.(IB) No. 352/Chd/CHD/2018. The Adjudicating Authority dismissed the main petition filed under Section 9 of the IBC as withdrawn and released the Corporate Debtor from the rigors of the IBC subject to payment of Rs. 8,36,001/- towards reimbursement of expenses incurred by the IRP. The Appellant, the Erstwhile Resolution Professional, is aggrieved by the rejection of CIRP costs and fees payable to him and erroneous remarks passed regarding his duties and functions as IRP.

## Facts

Kotak Commodity Services Pvt. Ltd., an Operational Creditor, filed a petition under Section 9 of the IBC against Cheema Spintex Ltd., the Corporate Debtor. The Adjudicating Authority commenced CIRP proceedings, and Alok Kaushik was appointed as the IRP. Before the expiry of the last date for submission of claims, a settlement was reached on 12.10.2021 between Cheema Spintex Ltd. and Kotak Commodity Services Pvt. Ltd. The Operational Creditor submitted Form FA to the IRP seeking withdrawal from the CIRP. The IRP filed IA No. 510/2021 on 18.10.2021 for withdrawal of CIRP under Section 12A of the IBC. The ex-management of the Corporate Debtor also filed I.A. No. 527/2021 on 22.10.2021 seeking withdrawal of CIRP and I.A. No. 591/2021 on 17.11.2021 seeking a stay on the

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## Issues and analysis

### Issue 1: Whether in light of the admitted fact that the IRP himself filed the CIRP withdrawal application on …

**Ratio:** An IRP is expected to act as the driving force and nerve-center of the resolution

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**Reasoning:** The NCLAT agreed with the Adjudicating Authority that the IRP's conduct was not

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**Interpretation:** The IRP's role requires a proactive approach in seeking guidance from the

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**Application:** The IRP filed the withdrawal application shortly after the CIRP commenced.

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Alok Ka…
- **Respondents:** Cheema Spintex…; Cheema Sp…

## Timeline

- **2021-10-06 — CIRP Commen…**: CIRP commenced against…
- **2021-10-12 — Settlement…**: Settlement arrived between Respondent…

## 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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