# In the matter of Kiran Global Chems Ltd. IA-232(CHE)2021 in IBA-81-2020

> NCLT judgment dated 2021-03-19. Citation: TCN-2021-NCLT-02631. The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 19 Mar 2021
- **Citation:** TCN-2021-NCLT-02631
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kiran-global-chems-ltd-ia-232che2021-in-iba-81-2020-7624dee2

## Summary

### Background

The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Section 60(5) of the same code and Regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. An Interim Resolution Professional (IRP) was appointed for the Corporate Insolvency Resolution Process (CIRP) of M/s. Kiran Global Chems Limited. The suspended Board of Directors settled outstanding dues with the Operational Creditor, leading to a proposal to withdraw the application.

## Facts

An application was filed under Section 12A of the Insolvency and Bankruptcy Code, 2016, for the Corporate Insolvency Resolution Process (CIRP) of M/s. Kiran Global Chems Limited. Thauvai Ramachandran Ravichandran was appointed as the Interim Resolution Professional (IRP). The suspended Board of Directors settled the outstanding dues to the Operational Creditor. The IRP filed an application to withdraw the CIRP due to the settlement. The Operational Creditor submitted Form FA under Regulation 30A of IBBI Regulations, 2016. The IRP received Form FA from the Operational Creditor on 10.03.2021. The IRP also received a cheque of Rs. 13,36,590/- towards estimated expenses. The application to withdraw was filed within 3 days of receiving the application from the Operational

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of the Corporate Insolvency Resolution …

**Ratio:** Section 12A of the IBC, 2016, provides a mechanism for the withdrawal of an application

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**Reasoning:** The court reasoned that since a settlement had been reached between the Operational

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**Interpretation:** Section 12A is interpreted to provide flexibility in the CIRP, allowing for

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**Application:** The court applied Section 12A to the facts of the case, where a settlement was

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** Thauvai Ramachandr…
- **Respondents:** M/s. Kiran Global…; M/s Kiran Global…
- **Advocates:** S. Sathiyanarayana…; P.H. Arvindh…

## Timeline

- **2021-03-05 — Appointment…**: Thauvai Ramachandran Ravichandran was appointed as the Interim Resolution Professional…
- **2021-03-07 — Paper Publi…**: Paper publication made in 'New…

## 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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