# In the matter of Finecrete Eco-Blocks Private Limited IA-1188(KB)2020 In C.P. (IB)-26(KB)2019, and IA-844, 912,1188 & 1255(KB)2020

> NCLT judgment dated 2021-01-12. Citation: TCN-2021-NCLT-03324. The case involves an application (I.A. No. 1188 of 2019) under Section 12A of the Insolvency…

- **Court:** NCLT
- **Order date:** 12 Jan 2021
- **Citation:** TCN-2021-NCLT-03324
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/finecrete-eco-blocks-private-limited-ia-1188kb2020-in-cp-ib-26kb2019-and-ia-844-54bebaee

## Summary

### Background

The case involves an application (I.A. No. 1188 of 2019) under Section 12A of the Insolvency and Bankruptcy Code (IBC) for the closure of the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor. The CIRP was initiated vide an order dated 03.10.2019. The Interim Resolution Professional (IRP) was confirmed as the Resolution Professional (RP) on 15.11.2019. Claims were received only from a sole Financial Creditor constituting the Committee of Creditors (CoC) and the Income Tax Department.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on an order dated 03.10.2019. An Interim Resolution Professional (IRP) was appointed and later confirmed as the Resolution Professional (RP) on 15.11.2019. The RP published Form 'G' on 17.12.2019, inviting claims. The claims were received only from the sole Financial Creditor constituting the Committee of Creditors (CoC) and the Income Tax Department. The 9th CoC meeting held on 21.12.2020 resolved to close the CIRP, authorizing the RP to file an application for closure. The RP confirmed that all CIRP expenses had been paid. The key fact is that the CoC decided to close the CIRP, leading to the application under Section 12A of the IBC.

## Issues and analysis

### Issue 1: Whether the application under Section 12A of the IBC for closure of the CIRP should be allowed …

**Ratio:** Section 12A of the IBC allows for the withdrawal of an application admitted under Section

…

**Reasoning:** The court considered the resolution passed by the CoC in its 9th meeting held on

…

**Interpretation:** Section 12A provides a mechanism for the CoC to decide to withdraw an

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**Application:** In this case, the CoC resolved to close the CIRP, and the RP filed an

…

## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** M/S FINECRETE ECO…

## Timeline

- **2019-10-03 — CIRP Init…**: CIRP was initiated…
- **2019-11-15 — RP Confir…**: The IRP was confirmed…

## 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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