# In the matter of A B Infrabuild Ltd. I.A. 2223-2021 in C.P. No. 2916-IBC-MB-2019

> NCLT judgment dated 2021-10-04. Citation: TCN-2021-NCLT-00889. The case involves an Interlocutory Application (I.A. 2223/2021) filed by the Interim Resolution…

- **Court:** NCLT
- **Order date:** 4 Oct 2021
- **Citation:** TCN-2021-NCLT-00889
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/a-b-infrabuild-ltd-ia-2223-2021-in-cp-no-2916-ibc-mb-2019-79c1d044

## Summary

### Background

The case involves an Interlocutory Application (I.A. 2223/2021) filed by the Interim Resolution Professional (IRP), Mr. Vasudev Ganesh Nayak Udupi, under Section 12A of the Insolvency and Bankruptcy Code (IBC) for withdrawing the main company petition No. 2916/2019. This withdrawal is sought due to a settlement reached between the Corporate Debtor (A B Infrabuild Ltd.) and the Operational Creditor (Namaskar Service Station). The Operational Creditor received Rs. 28 lakhs against a total claim of Rs. 30,40,786/- as a full and final settlement.

## Facts

Namaskar Service Station filed a company petition (No. 2916/2019) against A B Infrabuild Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016. An Interim Resolution Professional (IRP), Mr. Vasudev Ganesh Nayak Udupi, was appointed. Subsequently, a settlement was reached between Namaskar Service Station (Operational Creditor) and A B Infrabuild Ltd. (Corporate Debtor). As part of the settlement, the Operational Creditor received Rs. 28 lakhs by demand draft dated 2021-09-23 against a total claim of Rs. 30,40,786/-. The IRP then filed I.A. 2223/2021 under Section 12A of the IBC to withdraw the company petition. The Committee of Creditors (COC) was not constituted. The IRP confirmed receipt of his fees from the Operational Creditor.

## Issues and analysis

### Issue 1: Whether the Interlocutory Application (I.A. 2223/2021) filed by the IRP for withdrawal of the …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code (IBC) allows for the withdrawal of an

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**Reasoning:** The court considered the IRP's submission that a settlement had been reached between the

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**Interpretation:** Section 12A provides a mechanism for parties to resolve their disputes outside

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**Application:** In this case, the court applied Section 12A by considering the settlement

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Respondents:** A B Infrabuild…

## Timeline

- **2019-01-01 — Company Petiti…**: Company petition No. 2916/2019…
- **2021-08-26 — CIRP Admissio…**: CIRP admission order passed…

## 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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