# In the matter of Kavya Buildcon Private Limited IA 550-MB-II-2020 in CP (IB)-1390-MB-II-2019

> NCLT judgment dated 2020-07-06. Citation: TCN-2020-NCLT-01063. This is an Interlocutory Application filed under section 12A of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 6 Jul 2020
- **Citation:** TCN-2020-NCLT-01063
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kavya-buildcon-private-limited-ia-550-mb-ii-2020-in-cp-ib-1390-mb-ii-2019-cd4328df

## Summary

### Background

This is an Interlocutory Application filed under section 12A of the Insolvency & Bankruptcy Code, 2016 (IBC) by Mr. Nandkishore Vishnupant Deshpande, the Interim Resolution Professional (IRP) appointed vide order dated 29.01.2020. The application seeks withdrawal of the Company Petition [CP(IB)-1390/MB.II/2019] filed under section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) by Riddhim Textiles (through its proprietor Leena J Salot) for initiating CIRP against Kavya Buildcon Private Limited, the Corporate Debtor. The Financial Creditor sought to withdraw the Company Petition No.1390/2019 and to recall the CIRP ordered in Kavya Buildcon Private Limited vide orders dated 29.01.2020.

## Facts

Riddhim Textiles, the Financial Creditor, filed a Company Petition [CP(IB)-1390/MB.II/2019] under section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC) for initiating CIRP against Kavya Buildcon Private Limited, the Corporate Debtor. An Interim Resolution Professional (IRP), Mr. Nandkishore Vishnupant Deshpande, was appointed vide order dated 29.01.2020. Subsequently, the Financial Creditor sought to withdraw the Company Petition. The Corporate Debtor and the Financial Creditor reached an amicable settlement, and the Corporate Debtor admitted a sum of Rs.43,68,750/-. The CIRP cost was also paid. The Corporate Debtor and Applicant/IRP got knowledge of admission of CP (IB) 1390/MB.II/2019 after the order dated 29.01.2020 was uploaded on the NCLT website on 01.02.2020.

## Issues and analysis

### Issue 1: Whether the Financial Creditor can withdraw the Company Petition [CP(IB)-1390/MB.II/2019] filed …

**Ratio:** Section 12A of the Insolvency & Bankruptcy Code, 2016 allows for withdrawal of an

…

**Reasoning:** The court considered the submission that the disputes between the parties had been

…

**Interpretation:** Section 12A provides a mechanism for withdrawal of insolvency proceedings when

…

**Application:** The court applied the principle of allowing withdrawal based on the amicable

…

## Parties

- **Judges:** Rajasekha…; RavikumarDu…
- **Appellants:** Nandkishore…
- **Respondents:** Kavya Buildcon…

## Timeline

- **2020-01-29 — Order for Appointment…**: Mr. Nandkishore Vishnupant Deshpande appointed…
- **2020-01-29 — CIRP Ord…**: CIRP ordered in Kavya…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/kavya-buildcon-private-limited-ia-550-mb-ii-2020-in-cp-ib-1390-mb-ii-2019-cd4328df