# In the matter of Dugar Housing Limited MA-1428-2019 & MA-67,68,82-2020 in IBA-222-2019

> NCLT judgment dated 2020-02-21. Citation: TCN-2020-NCLT-01848. The case involves multiple applications related to the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 21 Feb 2020
- **Citation:** TCN-2020-NCLT-01848
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dugar-housing-limited-ma-1428-2019-ma-676882-2020-in-iba-222-2019-ae2131fd

## Summary

### Background

The case involves multiple applications related to the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Dugar Housing Limited. MA No. 67/2020 is an application filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking withdrawal of the CIRP. Other applications primarily oppose this withdrawal. The CIRP was initiated on 2019-11-13, and the applicant was appointed as the Interim Resolution Professional (IRP). The corporate debtor is maintained as a 'going concern' with three real estate projects. The operational creditor, Prism Johnson Limited, had filed an application, which the Tribunal directed the Committee of Creditors (COC) to consider under Section 12A of IBC.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Dugar Housing Limited on 2019-11-13. The company has three real estate projects: GLO DUGAR PROJECT, SKY DUGAR PROJECT, and LAKE DUGAR PROJECT. Prism Johnson Limited, an operational creditor, filed an application. The IRP made a public announcement calling for claims. Sree Sankeswara Foundations and Investments lodged a claim as a financial creditor. The IRP initially included Sree Sankeswara in the COC but later removed them, considering them a 'related party' due to a joint development agreement. Gurudev Foundations Pvt Ltd also filed a claim. The 2nd COC meeting held on 2020-01-14 approved the withdrawal of the CIRP. The IRP filed MA No. 67/2020 seeking withdrawal under Section 12A of IBC.

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## Issues and analysis

### Issue 1: Whether the resolution seeking withdrawal under Section 12A of IBC, 2016 was passed by a validly …

**Ratio:** Section 12A of IBC, 2016 allows the Adjudicating Authority to permit withdrawal of an

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**Reasoning:** The Tribunal considered whether the COC was validly constituted by the IRP and whether

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**Interpretation:** Section 12A requires a validly constituted COC with a 90% voting share to

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**Application:** The Tribunal found that the resolution for withdrawal was passed unanimously by

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** Velli Param…
- **Respondents:** M/s. Dugar…; M/s. Prism…

## Timeline

- **2019-11-13 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Dugar Housing…
- **2019-12-19 — First COC M…**: First meeting of the…

## 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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