# In the matter of Chhotanagpur Roadlines Pvt. Ltd. I.A.(IB)No.954-KB-2020 in CP (IB) No. 888-KB-2018

> NCLT judgment dated 2020-11-06. Citation: TCN-2020-NCLT-00290. The case involves an application (IA(IB) No. 954/KB/2020) filed by Punjab National Bank (PNB),…

- **Court:** NCLT
- **Order date:** 6 Nov 2020
- **Citation:** TCN-2020-NCLT-00290
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/chhotanagpur-roadlines-pvt-ltd-iaibno954-kb-2020-in-cp-ib-no-888-kb-2018-50bb2453

## Summary

### Background

The case involves an application (IA(IB) No. 954/KB/2020) filed by Punjab National Bank (PNB), the petitioning Financial Creditor, through the Resolution Professional, under Section 12A of the Insolvency and Bankruptcy Code (IBC) read with Regulation 30(A)(1)(b) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The Corporate Insolvency Resolution Process (CIRP) had been initiated against the Corporate Debtor, Chhotanagpur Roadlines Pvt. Ltd., and the petitioning Financial Creditor and the Corporate Debtor have arrived at a mutual settlement.

## Facts

The Punjab National Bank (PNB) initiated Corporate Insolvency Resolution Process (CIRP) against Chhotanagpur Roadlines Pvt. Ltd. The CIRP was initiated vide order dated 2019-07-15. Punjab National Bank filed an application (IA(IB) No. 954/KB/2020) under Section 12A of the IBC seeking withdrawal of the CIRP based on a mutual settlement with the Corporate Debtor. The Resolution Professional (RP), Niraj Agarwal, made a public announcement in two newspapers. The petitioning Financial Creditor (PNB) was the only party to submit a claim, which was submitted on 2020-09-21. The RP confirmed that all CIRP costs, including his fees, were fully paid by PNB. The insolvency commencement date was 2019-07-25.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

**Ratio:** Section 12A of the IBC, read with Regulation 30(A)(1)(b) of the IBBI (Insolvency

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**Reasoning:** The court reasoned that since the petitioning Financial Creditor and the Corporate Debtor

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

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**Application:** In this case, the court applied the ratio of Section 12A by considering the

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** Chhotanagpur…
- **Advocates:** Abir De…; D. Gh…; +1 more

## Timeline

- **2019-07-15 — CIRP Init…**: CIRP initiated against the Corporate…
- **2019-07-25 — Insolvency Commencement…**: Insolvency commenced on…

## 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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