# In the matter of Axis Nirman and Industries Ltd. IA No. 368-2021 IN
CP No. (IB) 25-ALD-2020

> NCLT judgment dated 2022-01-03. Citation: TCN-2022-NCLT-04567. The application, IA No. 368/2021, was filed by the Interim Resolution Professional (IRP) under…

- **Court:** NCLT
- **Order date:** 3 Jan 2022
- **Citation:** TCN-2022-NCLT-04567
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/axis-nirman-and-industries-ltd-ia-no-368-2021-in-cp-no-ib-25-ald-2020-a436f4d7

## Summary

### Background

The application, IA No. 368/2021, was filed by the Interim Resolution Professional (IRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC) read with Regulation 30A(1)(b) of the CIRP Regulations, seeking the closure of the Corporate Insolvency Resolution Process (CIRP) that had been initiated against the Corporate Debtor via an order dated August 27, 2021. Subsequent to the initiation of the CIRP, the suspended management of the Corporate Debtor and the Financial Creditor reached a settlement, culminating in the submission of Form FA dated October 1, 2021, to the IRP via email on October 7, 2021. The Committee of Creditors (CoC) had already been constituted, and the IRP duly placed Form FA at the second meeting of the CoC on October 20, 2021, for

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## Facts

The CIRP was initiated against the Corporate Debtor on August 27, 2021. Subsequently, the suspended management of the Corporate Debtor and the Financial Creditor entered into a settlement, submitting Form FA to the IRP on October 1, 2021, via email on October 7, 2021. The IRP presented Form FA to the CoC during its second meeting on October 20, 2021. The CoC approved the proposal for withdrawal of the CIRP with 100% voting share. The IRP submitted that no other claimants had filed claims with the IRP regarding the Corporate Debtor. The relevance of these facts lies in demonstrating the settlement reached between the parties and the CoC's approval for the withdrawal of the CIRP, which formed the basis for the court's decision to close the CIRP.

## Issues and analysis

### Issue 1: Whether the CIRP initiated against the corporate debtor should be closed based on the settlement …

**Ratio:** Section 12A of the IBC and Regulation 30A(1)(b) of the CIRP Regulations allow for the

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**Reasoning:** The court considered the IRP's submission that the CoC had approved the proposal for

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**Interpretation:** Section 12A provides a mechanism for settling disputes and withdrawing CIRP if

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**Application:** In this case, the settlement between the Corporate Debtor's suspended

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Respondents:** AXIS NIRMAN AND…; Kaledonia Jute…

## Timeline

- **2021-08-27 — CIRP Init…**: CIRP initiated against…
- **2021-10-01 — Form FA Sub…**: Form FA submitted to…

## 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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