# In the matter of Live 100 Hospital Private Limited I.A. No. 382-2019 in CP (IB) No. 107-BB-2017

> NCLT judgment dated 2019-08-06. Citation: TCN-2019-NCLT-02087. Edelweiss Asset Reconstruction Company Limited, the financial creditor, initiated Corporate…

- **Court:** NCLT
- **Order date:** 6 Aug 2019
- **Citation:** TCN-2019-NCLT-02087
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/live-100-hospital-private-limited-ia-no-382-2019-in-cp-ib-no-107-bb-2017-12007562

## Summary

### Background

Edelweiss Asset Reconstruction Company Limited, the financial creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Live 100 Hospital Private Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The petition was admitted by the NCLT on 02.04.2018, and an Interim Resolution Professional (IRP) was appointed, later confirmed as the Resolution Professional (RP). The RP invited Expression of Interest (EOI) from prospective resolution applicants. However, the financial creditor, being the sole member of the Committee of Creditors (COC), sought to withdraw the CIRP under Section 12A of the IBC due to a settlement reached with the Corporate Debtor's promoter.

## Facts

Edelweiss Asset Reconstruction Company Limited initiated CIRP against Live 100 Hospital Private Limited under Section 7 of IBC. The petition was admitted on 02.04.2018, and Rajesh Jhunjhunwala was appointed as IRP, later confirmed as RP. The RP invited EOIs, but one prospective resolution applicant withdrew before voting. The 270-day CIRP period ended on 27.12.2018 without a resolution plan. The financial creditor, being the sole member of COC, resolved to liquidate the corporate debtor. The RP filed applications for liquidation (I.A No. 459/2018) and for appointment as liquidator (I.A No. 114/2019). The RP also filed an application (I.A No. 282/2018) seeking reliefs against the ex-promoter. The promoter agreed to pay Rs. 30 crores to the financial creditor as full

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the Insolvency and …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Regulation 30A of the

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**Reasoning:** The tribunal considered the settlement agreement between the financial creditor and the

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if a settlement is

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**Application:** In this case, the financial creditor, being the sole member of the COC,

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Edelweiss Asset…
- **Respondents:** Live 100 Hospital…

## Timeline

- **2017-01-01 — CP (IB) No. 107/BB/2017…**: Edelweiss Asset Reconstruction Company Limited filed CP (IB) No. 107/BB/2017 against Live…
- **2018-04-02 — CIRP Init…**: The Tribunal admitted the petition and…

## 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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