# In the matter of Funbars Hospitality Pvt. Ltd. (IB)1319(ND)-2018

> NCLT judgment dated 2019-01-21. Citation: TCN-2019-NCLT-05213. The case involves CA 83/2019, a status report filed by the Resolution Professional (RP), and CA…

- **Court:** NCLT
- **Order date:** 21 Jan 2019
- **Citation:** TCN-2019-NCLT-05213
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/funbars-hospitality-pvt-ltd-ib1319nd-2018-729d4f2d

## Summary

### Background

The case involves CA 83/2019, a status report filed by the Resolution Professional (RP), and CA 82/2019, filed under Sections 19(2) and 19(3) of the Insolvency and Bankruptcy Code (IBC). The bench was notified that no claims were received against the Corporate Debtor following a publication. The sole claimant, an Operational Creditor, decided to terminate the Corporate Insolvency Resolution (CIR) process because their claim was settled.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Funbars Hospitality Pvt. Ltd. A public announcement was made, but no claims were received against the Corporate Debtor, except for one Operational Creditor. The Operational Creditor subsequently settled their claim and decided to terminate the CIRP. CA 83/2019 was filed as a status report by the RP, and CA 82/2019 was filed under Sections 19(2) and 19(3) of the IBC. The settlement of the Operational Creditor's claim is the key fact that led to the termination of the CIRP.

## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) can be terminated when the sole …

**Ratio:** The CIRP can be terminated if the sole claimant, the Operational Creditor, has settled

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**Reasoning:** The court reasoned that since the only claimant has settled their claim and has resolved

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**Interpretation:** This interprets the IBC to allow for the termination of the CIRP when the

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**Application:** In this specific case, the Operational Creditor's settlement and decision to

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## Parties

- **Judges:** V.K. SUB…; Ina Mal…
- **Respondents:** Funbars Hospitalit…; Neeraj…
- **Advocates:** Neeraj…

## Timeline

- **2019-01-21 — Hearing…**: Hearing before the New Delhi Bench of…
- **2019-01-01 — Filing of CA…**: CA 83/2019 filed by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19(2) — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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