# In the matter of Ketan Construction Limited I.A. No. 532 of 2020 in C.P. (I.B) No. 57-NCLT-AHM-2019

> NCLT judgment dated 2020-09-03. Citation: TCN-2020-NCLT-00730. This case involves an application (IA 532 of 2020) seeking the withdrawal of the Corporate…

- **Court:** NCLT
- **Order date:** 3 Sept 2020
- **Citation:** TCN-2020-NCLT-00730
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ketan-construction-limited-ia-no-532-of-2020-in-cp-ib-no-57-nclt-ahm-2019-17ed4503

## Summary

### Background

This case involves an application (IA 532 of 2020) seeking the withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor. The initial order for CIRP was issued on 2020-08-10 in CP(IB) 57 of 2019. The application for withdrawal is based on Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, and related regulations. The Committee of Creditors (COC) has not yet been constituted.

## Facts

The Interim Resolution Professional (IRP) of Ketan Construction Limited filed an application (IA 532 of 2020) to withdraw the Corporate Insolvency Resolution Process (CIRP) initiated against Raghuvir Buildcon Pvt Ltd & Anr. The CIRP was initially initiated via an order dated 2020-08-10. The application for withdrawal is based on Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016. The parties reached a settlement, signing consent terms on 2020-08-31. The Committee of Creditors (COC) had not yet been constituted. The court considered the consent terms, specifically para-10, which stipulated conditions for the withdrawal. The key issue was whether the withdrawal should be conditional, allowing for automatic revival of the CIRP if the settlement terms were

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) should …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, allows for the withdrawal

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**Reasoning:** The court considered the settlement reached between the parties, as evidenced by the

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**Interpretation:** Section 12A provides a mechanism for parties to resolve their disputes outside

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**Application:** In this case, the parties reached a settlement, and the IRP filed an

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Arvind Gaudana…
- **Respondents:** Raghuvir Buildcon…; Raghuvir Buildcon…

## Timeline

- **2019-01-01 — CP(IB) F…**: CP(IB) 57 of 2019 was…
- **2020-08-10 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…

## 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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