# In the matter of GBJ Hotels Private Limited IA-651-CHE-2021 in IBA-775-2019

> NCLT judgment dated 2021-08-03. Citation: TCN-2021-NCLT-01494. The case involves an application filed by the Interim Resolution Professional (IRP) of M/s. GBJ…

- **Court:** NCLT
- **Order date:** 3 Aug 2021
- **Citation:** TCN-2021-NCLT-01494
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gbj-hotels-private-limited-ia-651-che-2021-in-iba-775-2019-67c0feff

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) of M/s. GBJ Hotels Private Limited under Section 12A of the Insolvency & Bankruptcy Code, 2016, seeking withdrawal of the Company Petition filed by the Operational Creditor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on an application filed by the Operational Creditor, Gopal Das Mundhra, under Section 9 of the IBC, 2016. The Tribunal admitted the petition and initiated CIRP on 2021-05-31, appointing the applicant as the IRP.

## Facts

Gopal Das Mundhra, an Operational Creditor, filed an application under Section 9 of the IBC, 2016, against M/s. GBJ Hotels Private Limited (Corporate Debtor). The NCLT admitted the petition on 2021-05-31 and initiated the CIRP, appointing Arpit Kothari as the Interim Resolution Professional (IRP). Before the public announcement, the Operational Creditor communicated to the IRP on 2021-06-02 that the parties had reached an amicable settlement. A Memorandum of Understanding was entered into, where the Corporate Debtor agreed to pay Rs. 19,50,000/- as full and final settlement. The IRP received fees of Rs. 1,00,000/- from the Operational Creditor. The IRP then filed an application under Section 12A of the IBC, 2016, read with Regulation 30A of the IBBI Regulations,

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC, 2016, should be …

**Ratio:** Section 12A of the IBC, 2016, read with Regulation 30A of the IBBI (Insolvency Resolution

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**Reasoning:** The Tribunal considered the settlement agreement between the Operational Creditor and the

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**Interpretation:** Section 12A provides a mechanism for parties to settle their disputes and

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**Application:** In this case, the settlement agreement, the willingness of the Operational

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Respondents:** M/s. GBJ Hotels…

## Timeline

- **2021-05-31 — CIRP Init…**: The Tribunal admitted the petition filed by the Operational Creditor and initiated the…
- **2021-05-31 — IRP Appoi…**: Arpit Kothari was appointed as 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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