# In the matter of Associated Rilling & Services Limited CA No. 422-C-III-ND-2018 in CP No. IB-291-ND-2018

> NCLT judgment dated 2019-05-20. Citation: TCN-2019-NCLT-03257. The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 20 May 2019
- **Citation:** TCN-2019-NCLT-03257
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/associated-rilling-services-limited-ca-no-422-c-iii-nd-2018-in-cp-no-ib-291-nd-2-ca8d75e3

## Summary

### Background

The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code, 2016 (IBC, 2016) seeking the withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against Associated Drilling & Services Limited Corporate (Corporate Debtor). The CIRP was initiated based on a petition filed by the Operational Creditor, Tejwant Singh, due to an operational debt owed by the Corporate Debtor. An Interim Resolution Professional (IRP), Mr. Naresh Verma, was initially appointed, followed by the constitution of a Committee of Creditors (CoC). Subsequent CoC meetings led to the proposal and approval of a settlement plan. The Operational Creditor filed Form-FA for withdrawal of the CIRP.

## Facts

Tejwant Singh, an Operational Creditor, initiated CIRP against Associated Drilling & Services Limited Corporate due to unpaid operational debt. The CIRP was initiated on 2018-08-21. Naresh Verma was appointed as the Interim Resolution Professional (IRP). Claims were received from creditors, and a Committee of Creditors (CoC) was formed. In the first CoC meeting on 2018-09-25, it was proposed to replace the IRP with Navtej Singh. A settlement plan was mooted by the Corporate Debtor in the third CoC meeting on 2018-11-12. A draft settlement plan was approved in the fourth CoC meeting on 2018-11-26, and a formal settlement agreement was made in the fifth CoC meeting on 2018-12-11. Tejwant Singh filed Form-FA for withdrawal of the CIRP. The CIRP cost of Rs. 3.00 lakhs

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## Issues and analysis

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

**Ratio:** Section 12A of the IBC, 2016 allows for the withdrawal of CIRP with the approval of 90%

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**Reasoning:** The Tribunal considered the compliance with Section 12A and the approval of the

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if the CoC approves, even

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**Application:** In this case, the application for withdrawal was filed under Section 12A, and

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## Parties

- **Judges:** R. VARADH…; DR.V.K.Su…
- **Appellants:** Tejwant…
- **Respondents:** Associated…

## Timeline

- **2018-08-21 — CIRP Init…**: CIRP initiated by the Tribunal based on the petition filed by Tejwant Singh, the…
- **2018-09-01 — Appointment…**: Mr. Naresh Verma was appointed as the…

## 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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