# In the matter of Aarush Gems Pvt. Ltd. CA. No. 57-2018, C-IV (IB)-18(ND)-2018

> NCLT judgment dated 2018-08-30. Citation: TCN-2018-NCLT-00857. The case pertains to CA No. 57/2018, filed under Section 12A of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 30 Aug 2018
- **Citation:** TCN-2018-NCLT-00857
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aarush-gems-pvt-ltd-ca-no-57-2018-c-iv-ib-18nd-2018-37d4a23b

## Summary

### Background

The case pertains to CA No. 57/2018, filed under Section 12A of the Insolvency & Bankruptcy Code. The Resolution Professional (RP) filed the application. The corporate debtor, Aarush Gems Pvt. Ltd., had entered into a settlement agreement dated 2018-08-11. The Committee of Creditors (COC) approved the settlement and the withdrawal of the Corporate Insolvency Resolution Process (CIRP). The COC comprised ICICI Bank with a 63% voting share and Deewan Housing Finance Private Limited with a 37% voting share.

## Facts

Jindal Diamonds Pvt. Ltd. filed an application against Aarush Gems Pvt. Ltd. under Section 9 of the IBC, 2016. An RP was appointed. The corporate debtor, Aarush Gems Pvt. Ltd., entered into a settlement agreement dated 2018-08-11 with the applicant. The COC, consisting of ICICI Bank and Deewan Housing Finance Private Limited, approved the settlement and the withdrawal of the CIRP. The RP confirmed that all provisional charges were paid. The application for withdrawal was filed under Section 12A of the Insolvency & Bankruptcy Code. The key fact is the settlement agreement and the consent of 100% of the COC members to withdraw the CIRP.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP can be allowed given the settlement agreement …

**Ratio:** Rule 8 of the Insolvency & Bankruptcy Code (Adjudicating Authority) Rules, 2016,

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**Reasoning:** The court reasoned that since the RP's costs were satisfied, and 100% of the COC members

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**Interpretation:** The interpretation of Rule 8 emphasizes the importance of the COC's consent in

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**Application:** In this case, the ratio and reasoning were applied to the specific facts, where

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## Parties

- **Judges:** DEEPTI M…
- **Appellants:** Jindal Diamonds…
- **Respondents:** Aarush Gems Pvt.…

## Timeline

- **2018-08-11 — Settlement Ag…**: The corporate debtor entered into a…
- **2018-08-16 — IRP Confir…**: IRP was appointed and…

## 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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