# In the matter of BST Infratech Limited IA(I.B.C.)-967(KB)-2021 in C.P.(IB)-911(KB)2020

> NCLT judgment dated 2021-11-15. Citation: TCN-2021-NCLT-00507. The case involves an application under Section 60(5) of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 15 Nov 2021
- **Citation:** TCN-2021-NCLT-00507
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bst-infratech-limited-iaibc-967kb-2021-in-cpib-911kb2020-e9afa663

## Summary

### Background

The case involves an application under Section 60(5) of the Insolvency and Bankruptcy Code (IBC) for the closure of the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor. The application was filed prior to the constitution of the Committee of Creditors (CoC) based on a settlement between the Members of the Suspended Board and the petitioning Financial Creditor. A settlement agreement dated 2021-11-10 was placed on record. The CIRP was initiated vide order dated 2021-11-03.

## Facts

Jai Balaji Industries Private Limited was undergoing Corporate Insolvency Resolution Process (CIRP) initiated against BST Infratech Limited. An application, IA 967 (KB) 2021 in CP (IB) 911 (KB) 2020, was filed under Section 60(5) of the IBC for closure of the CIRP. The application was filed before the constitution of the Committee of Creditors (CoC) based on a settlement arrived at between the Members of the Suspended Board and the petitioning Financial Creditor. The Settlement Agreement dated 2021-11-10 was placed on record. The CIRP was initiated vide order dated 2021-11-03. The IRP submitted that there were no other claims in response to the public notice issued on 2021-11-04. The applicant relied on the judgment of the Supreme Court in Swiss Ribbons Private Limited

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## Issues and analysis

### Issue 1: Whether the application for closure of the CIRP can be allowed under Section 60(5) of the IBC, …

**Ratio:** The Supreme Court in Swiss Ribbons Private Limited vs. Union of India held that at any

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**Reasoning:** The court relied on the judgment of the Supreme Court in Swiss Ribbons Private Limited

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**Interpretation:** Section 60(5) of the IBC provides the NCLT with broad powers to deal with any

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**Application:** In this case, the application for closure of the CIRP was filed before the

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Jai Balaji…
- **Respondents:** BST INFRATECH…

## Timeline

- **2021-11-15 — Hearing…**: Attendance-cum-order sheet of the…
- **2021-11-03 — CIRP Initiati…**: CIRP initiated against the Corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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