# In the matter of AVJ Developers Pvt. Ltd. (CA-93 & 94-C-III-2018 in IB-260-(ND)-2018

> NCLT judgment dated 2019-02-08. Citation: TCN-2019-NCLT-04956. The case involves a joint application filed under Rule 11 of the NCLT Rules, 2016 by the…

- **Court:** NCLT
- **Order date:** 8 Feb 2019
- **Citation:** TCN-2019-NCLT-04956
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/avj-developers-pvt-ltd-ca-93-94-c-iii-2018-in-ib-260-nd-2018-b5ca12d9

## Summary

### Background

The case involves a joint application filed under Rule 11 of the NCLT Rules, 2016 by the Interim Resolution Professional (IRP) for the withdrawal of the order of Admission intimating Corporate Insolvency Resolution Process (CIRP). The initial order was dated 20.12.2018, revised on 07.01.2019, and received by the IRP on 09.01.2019. The Committee of Creditors (COC) had not yet been constituted.

## Facts

RMC Ready Mis India filed a petition against AVJ Developers (India) Pvt. Ltd. under Section 9 of the IBC, 2016, initiating Corporate Insolvency Resolution Process (CIRP). An order was passed on 20.12.2018, revised on 07.01.2019. The Interim Resolution Professional (IRP) filed a joint application for withdrawal of the order of admission, as a settlement was reached between the Operational Creditor (RMC Ready Mis India) and the Corporate Debtor (AVJ Developers). The Committee of Creditors (COC) had not been constituted. The Corporate Debtor paid the IRP's fees and reimbursed all costs. The IRP received the order on 09.01.2019.

## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) should be terminated based on the …

**Ratio:** The CIRP can be terminated if there is a settlement between the Operational Creditor and

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**Reasoning:** The court reasoned that since the Operational Creditor and the Corporate Debtor had

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**Interpretation:** This interpretation allows for the termination of CIRP when a mutual agreement

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**Application:** In this case, the settlement between RMC Ready Mis India and AVJ Developers,

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## Parties

- **Judges:** Ina Mal…
- **Appellants:** RMC Ready Mis…
- **Respondents:** AVJ Developers…

## Timeline

- **2018-12-20 — Initial…**: Order intimating Corporate Insolvency…
- **2019-01-07 — Revised…**: The initial order was…

## 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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