# In the matter of Ambica Concrete Company (India) Ltd. IA 387-2019 in C.P. (IB) No. 325-NCLT-AHM-2018

> NCLT judgment dated 2019-07-05. Citation: TCN-2019-NCLT-02664. The case involves an application (IA 387 of 2019) filed in connection with a Corporate…

- **Court:** NCLT
- **Order date:** 5 Jul 2019
- **Citation:** TCN-2019-NCLT-02664
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ambica-concrete-company-india-ltd-ia-387-2019-in-cp-ib-no-325-nclt-ahm-2018-1b7639c9

## Summary

### Background

The case involves an application (IA 387 of 2019) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against Ambica Concrete Company (India) Limited. The applicant, Reliance Commercial Finance Ltd., sought to withdraw the IB Petition (CP (IB) No.325 of 2018) and recall the CIRP based on a settlement reached between the parties. The Interim Resolution Professional (IRP) had already been appointed and had made a public announcement for the initiation of CIRP. The settlement involved the corporate debtor paying Rs. 13,27,534 to the financial creditor.

## Facts

Reliance Commercial Finance Ltd., the financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Ambica Concrete Company (India) Limited. An Interim Resolution Professional (IRP), Ms. Bhavi Shreyans Shah, was appointed, and a public announcement for the CIRP was made. Subsequently, the corporate debtor, Ambica Concrete Company (India) Limited, approached Reliance Commercial Finance Ltd. and offered a settlement of Rs. 13,27,534, which was accepted. The payment was made through RTGS on 01.07.2019. The application for withdrawal of the CIRP was filed before the Committee of Creditors (CoC) was constituted, with the last date for lodging claims by creditors being 10.07.2019. The applicant relied on Section 60(5) of the Insolvency and Bankruptcy

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has the power to allow the withdrawal of an IB Petition and …

**Ratio:** The legal principle is that the Adjudicating Authority possesses the necessary power and

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**Reasoning:** The court reasoned that since the CoC had not been formally constituted, there was no

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**Interpretation:** This interprets the IBC and NCLT rules to allow for flexibility in resolving

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**Application:** In this specific case, the court applied the ratio by allowing the withdrawal

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## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Appellants:** Reliance Commercia…
- **Respondents:** Ambica Concrete…

## Timeline

- **2018-01-01 — CP (IB) No. 32…**: The IB Petition was…
- **2019-06-19 — Order admitting I.B.…**: The Adjudicating Authority admitted the I.B. Petition and appointed Ms. Bhavi Shreyans…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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