# In the matter of Bansal Fintrade Pvt. Ltd. IA 190 of 2020 in C.P. (I.B) No. 328-NCLT-AHM-2019

> NCLT judgment dated 2020-03-05. Citation: TCN-2020-NCLT-01628. The case involves an application under Section 12A of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 5 Mar 2020
- **Citation:** TCN-2020-NCLT-01628
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bansal-fintrade-pvt-ltd-ia-190-of-2020-in-cp-ib-no-328-nclt-ahm-2019-743207a1

## Summary

### Background

The case involves an application under Section 12A of the Insolvency and Bankruptcy Code, 2016, for withdrawal of an application, accompanied by Form FA, under Regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. An earlier application under Section 9 of the IB Code had been admitted, and Mr. Tejas Kiranbhai Shah was appointed as IRP.

## Facts

An application was filed under Section 9 of the IB Code and was admitted. Mr. Tejas Kiranbhai Shah was appointed as the IRP based on a proposal by the Operational Creditor. Subsequently, the matter was settled between the parties. The learned PCS submitted that the Operational Creditor has cleared the dues of the IRP. The CIRP/moratorium ceased to have effect. The IRP is released from his duties, and the Corporate Debtor is freed from the rigour of the CIRP. This led to the filing of an IA under Section 12A for withdrawal of the application.

## Issues and analysis

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

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of an

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**Reasoning:** The court reasoned that since the matter had been settled between the parties and the

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**Interpretation:** Section 12A is interpreted to facilitate settlements between parties, allowing

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Respondents:** Bansal Fintrade…

## Timeline

- **2020-02-10 — Application…**: An application filed under Section…
- **2020-03-05 — Order Da…**: The instant application is…

## 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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