# In the matter of Ahluwalia Contracts India Ltd. IA-2186 & 2199-ND-2021
 in (IB)-2135(ND)2019

> NCLT judgment dated 2021-05-12. Citation: TCN-2021-NCLT-02162. The case involves an application filed by the Interim Resolution Professional (IRP) under…

- **Court:** NCLT
- **Order date:** 12 May 2021
- **Citation:** TCN-2021-NCLT-02162
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ahluwalia-contracts-india-ltd-ia-2186-2199-nd-2021-in-ib-2135nd2019-3d36c71f

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC) seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against M/s A2 Interiors Products Pvt. Ltd. The CIRP was initiated based on an order passed on May 5, 2021. The parties have amicably settled the matter, with payment made to the applicant and deposited in an escrow account. The applicant has submitted Form 'FA' as consent for the withdrawal application. The Committee of Creditors (CoC) has not been formed, and no claims have been received or public notice issued. The IRP confirms that all charges have been paid, and the assets and documents of the Corporate Debtor have not been taken over.

## Facts

M/s A2 Interiors Products Pvt. Ltd. was undergoing Corporate Insolvency Resolution Process (CIRP) based on an order dated 2021-05-05. The CIRP was initiated by the Bench. The Interim Resolution Professional (IRP) filed an application under Section 12A of the Insolvency and Bankruptcy Code (IBC) seeking withdrawal of the CIRP. The parties involved reached an amicable settlement, with payment made to the applicant and deposited in an escrow account. The applicant submitted Form 'FA' as consent for the withdrawal application. The Committee of Creditors (CoC) had not been formed, and no claims were received or public notice issued. The IRP confirmed that all charges had been paid, and the assets and documents of the Corporate Debtor had not been taken over by the IRP. The

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC should be allowed, …

**Ratio:** Section 12A of the IBC allows for the withdrawal of CIRP with the approval of 90% of the

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**Reasoning:** The court reasoned that since the parties had amicably settled the matter, the payment

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**Interpretation:** The interpretation of Section 12A in this context emphasizes the court's

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** DEEPTI M…; SUMITAPURKA…
- **Respondents:** M/s A2 Interiors…; M/s Ahluwalia…

## Timeline

- **2021-05-05 — CIRP Init…**: Order passed initiating CIRP against…
- **2021-05-12 — Order del…**: Order delivered on the…

## 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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