# In the matter of ASP Sealing Products Limited CP No. (IB)-1384(ND)-2019

> NCLT judgment dated 2020-02-20. Citation: TCN-2020-NCLT-01868. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s ASP…

- **Court:** NCLT
- **Order date:** 20 Feb 2020
- **Citation:** TCN-2020-NCLT-01868
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/asp-sealing-products-limited-cp-no-ib-1384nd-2019-ff7d4977

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s ASP Sealings Products Limited based on an application filed by the financial creditor, Amrish Gupta, under Section 7 of the Insolvency and Bankruptcy Code (IBC). An order was passed on 12.02.2020 admitting the application and initiating the CIRP. Subsequently, an appeal was filed before the NCLAT, which was later withdrawn after the parties executed a Settlement Agreement. The parties then approached the NCLT under Section 12A of the IBC for withdrawal of the CIRP.

## Facts

Amrish Gupta, a financial creditor, initiated CIRP against M/s ASP Sealings Products Limited under Section 7 of IBC. The CIRP was initiated via an order dated 12.02.2020. An appeal was filed before NCLAT, but it was withdrawn after a settlement agreement was reached on 17.02.2020. The financial creditor then filed an application to record the settlement and recall the CIRP order. The corporate debtor paid Rs. 25 lakhs, with the remaining amount to be paid via post-dated cheques. The Resolution Professional made a public announcement on 15.02.2020, with a claim filing deadline of 26.02.2020. The CoC was not constituted. The Resolution Professional incurred expenses of Rs. 1,50,000. The financial creditor requested the liberty to revive the original petition if the

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## Issues and analysis

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

**Ratio:** Regulation 30A (1)(a) of CIRP Regulations, 2016 allows for the withdrawal of an

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**Reasoning:** The court noted that the CoC had not been constituted and that the application for

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**Interpretation:** Section 12A of the IBC, read with Regulation 30A of the CIRP Regulations,

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**Application:** Since the CoC was not constituted, and the Interim Resolution Professional

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## Parties

- **Judges:** CH. MOHD SHARIEF…; SMT SUMITA…
- **Appellants:** Amrish…
- **Respondents:** M/ASP Sealings…

## Timeline

- **2020-02-12 — Order for CIRP…**: An order was passed initiating the CIRP…
- **2020-02-17 — Settlement Ag…**: The parties executed a…

## 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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