# In the matter of K. C. land and Finance Ltd. IA No. 372-2021 in CP (IB) No. 332-Chd-Pb-2018

> NCLT judgment dated 2021-08-06. Citation: TCN-2021-NCLT-01429. The case pertains to an application (IA No.372/2021) filed by the operational creditor,…

- **Court:** NCLT
- **Order date:** 6 Aug 2021
- **Citation:** TCN-2021-NCLT-01429
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/k-c-land-and-finance-ltd-ia-no-372-2021-in-cp-ib-no-332-chd-pb-2018-6d655dbd

## Summary

### Background

The case pertains to an application (IA No.372/2021) filed by the operational creditor, Ludhiana Scrips Pvt. Ltd., under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to withdraw the Corporate Insolvency Resolution Process (CIRP) initiated against the corporate debtor, K.C. Land & Finance Ltd., in CP(IB) No.332/Chd/Pb/2018. The CIRP proceedings were initiated and admitted on 27.07.2021.

## Facts

Ludhiana Scrips Pvt. Ltd., the operational creditor, initiated CIRP against K.C. Land & Finance Ltd., the corporate debtor, under CP(IB) No.332/Chd/Pb/2018. The CIRP was admitted on 27.07.2021. Subsequently, the operational creditor and the corporate debtor reached a settlement. As per the requirements of IBC, 2016, a bank guarantee of Rs.2,00,000/- was provided towards IRP fees, CIRP costs, and expenses. The operational creditor then filed IA No.372/2021 under Section 12A of IBC, 2016, seeking to withdraw the CIRP proceedings based on the settlement. The IRP, Mr. Rajesh Loomba, confirmed the settlement and the bank guarantee. The settlement deed was dated 27.07.2021, Annexure A-4 of the application.

## Issues and analysis

### Issue 1: Whether the application (IA No.372/2021) filed by the operational creditor under Section 12A of …

**Ratio:** Section 12A of the IBC, 2016, allows for the withdrawal of CIRP proceedings with the

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**Reasoning:** The court reasoned that the operational creditor and the corporate debtor had reached a

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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 between the operational creditor and the corporate

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## Parties

- **Judges:** RaghuNa…; Ajay Kumar…
- **Appellants:** Ludhiana Scrips…
- **Respondents:** K.C. Land &…

## Timeline

- **2021-07-27 — Admission o…**: CP No.332/Chd/Pb/2018 was admitted by the Adjudicating Authority initiating CIRP against…
- **2021-07-27 — Settlemen…**: The operational creditor and corporate…

## 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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