# In the matter of Bharat Bight Bars Pvt. Ltd.  MA 7523-2019 IN C.P.(IB)-3967(MB)-2018

> NCLT judgment dated 2019-12-13. Citation: TCN-2019-NCLT-00206. The case involves an application (MA 3494/2019) under Section 12A of the Insolvency and…

- **Court:** NCLT
- **Order date:** 13 Dec 2019
- **Citation:** TCN-2019-NCLT-00206
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bharat-bight-bars-pvt-ltd-ma-7523-2019-in-cpib-3967mb-2018-1b773a3b

## Summary

### Background

The case involves an application (MA 3494/2019) under Section 12A of the Insolvency and Bankruptcy Code (I&B Code). The proceeding commenced with an order dated 2019-09-26, appointing Mr. Pankaj Sham Joshi as the Interim Resolution Professional (IRP). Evidence of settlement of debt between the Debtor and Creditor was presented, stating that the sole Financial Creditor has been paid.

## Facts

The key facts are as follows: An application (MA 3494/2019) was filed under Section 12A of the I&B Code. An order dated 2019-09-26 initiated the proceeding, appointing Mr. Pankaj Sham Joshi as IRP. Evidence of debt settlement between the Debtor and Creditor was submitted, confirming payment to the sole Financial Creditor. The Debtor agreed to pay CIRP costs and professional fees to the IRP. The conditions specified under the I&B Code were complied with. These facts are relevant because they demonstrate the process of initiating insolvency proceedings, the subsequent settlement of debt, and the Debtor's commitment to cover associated costs, leading to the consideration of the application under Section 12A for withdrawal of the insolvency proceedings.

## Issues and analysis

### Issue 1: Whether the application under Section 12A of the I&B Code should be allowed given the …

**Ratio:** Section 12A of the I&B Code allows for the withdrawal of an application admitted

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**Reasoning:** The court reasoned that since the Debtor and Creditor had settled the debt, and the

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**Interpretation:** Section 12A is interpreted as providing a mechanism for parties to resolve

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**Application:** In this specific case, the ratio and reasoning were applied to the facts that

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## Parties

- **Judges:** M.K. Sh…; Chandra Bha…
- **Appellants:** Reliance Commercia…
- **Respondents:** Bharat Bight Bars…

## Timeline

- **2019-09-26 — Order Da…**: Order issued commencing the proceeding and…
- **2019-12-13 — Order Da…**: Order issued allowing the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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