# 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-00864. 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-00864
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aarush-gems-pvt-ltd-ca-no-57-2018-c-iv-ib-18nd-2018-53f4a912

## Summary

### Background

The case pertains to CA No. 57/2018, filed under Section 12A of the Insolvency & Bankruptcy Code. An IRP was appointed and later confirmed as RP by the COC. The corporate debtor entered into a settlement agreement dated 11.08.2018. The RP stated that all requirements under the Code and Regulation 30(a) were met. The COC, consisting of ICICI Bank and Deewan Housing Finance Private Limited, approved the withdrawal of the CIRP proceedings.

## Facts

Jindal Diamonds Pvt. Ltd. filed an application against Aarush Gems Pvt. Ltd. under Section 9 of the IBC, 2016. An IRP was appointed and confirmed as RP by the COC. 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 (63% voting share) and Deewan Housing Finance Private Limited (37% voting share), approved the withdrawal of the CIRP. The RP stated that all dues were paid. The application for withdrawal was filed under Section 12A of the IBC. The authorized representative of the corporate debtor was present during the proceedings.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the Insolvency & …

**Ratio:** The legal principle applied is that a CIRP can be withdrawn if a settlement agreement is

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**Reasoning:** The court reasoned that the settlement agreement was in place, the COC members,

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**Interpretation:** Section 12A of the IBC allows for the withdrawal of a CIRP application if

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**Application:** In this case, the court applied the principle by verifying the existence of the

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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 confirmed as RP…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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