# In the matter of Madhushree Industries Private Limited IA(I.B.C)-906(KB)2021 in C.P.(IB)-1699(KB)2019

> NCLT judgment dated 2021-11-01. Citation: TCN-2021-NCLT-00621. The case involves an application under Section 12A of the Code read with Regulation 30-A(1)(d)…

- **Court:** NCLT
- **Order date:** 1 Nov 2021
- **Citation:** TCN-2021-NCLT-00621
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/madhushree-industries-private-limited-iaibc-906kb2021-in-cpib-1699kb2019-0a662d29

## Summary

### Background

The case involves an application under Section 12A of the Code read with Regulation 30-A(1)(d) of the Corporate Insolvency Resolution Process Regulations, seeking closure of the CIRP initiated against the Corporate Debtor. The CIRP was initiated vide order dated 13.08.2021. The last date for filing claims with the IRP was 03/09/2021, and the due date for verification of claims was 27/08/2021. Only one claim, from the Operational Creditor, was received. The Committee of Creditors (CoC) was constituted with the Petitioning Operational Creditor as its sole member. The suspended board approached the Operational Creditor for settlement, and the CoC approved the settlement at its meeting on 05/10/2021.

## Facts

The Mining Industrial Corporation initiated a Corporate Insolvency Resolution Process (CIRP) against Madhushree Industries Private Limited. The CIRP was initiated on 13.08.2021. The last date for filing claims was 03.09.2021, and the verification date was 27.08.2021. Only one claim was received from the Operational Creditor. The Committee of Creditors (CoC) consisted solely of the Operational Creditor. The suspended board of directors approached the Operational Creditor for a settlement. The CoC approved the settlement in a meeting held on 05.10.2021. An application was filed under Section 12A of the Code read with Regulation 30-A(1)(d) seeking closure of the CIRP. The CIRP costs were paid in full. There were no objections or pending applications from other creditors.

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## Issues and analysis

### Issue 1: Whether the application for closure of the CIRP under Section 12A of the Code read with Regulation …

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

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**Reasoning:** The court reasoned that the application for closure was made under Section 12A read with

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**Interpretation:** Section 12A and Regulation 30-A(1)(d) are interpreted to allow for the closure

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**Application:** The court applied this ratio to the facts by noting the CoC's approval of the

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Respondents:** MADHUSHREE…
- **Advocates:** Shaunak…; Saurav…; +1 more

## Timeline

- **2021-08-13 — CIRP Init…**: CIRP initiated against…
- **2021-08-27 — Due Date for Verificatio…**: The due date for verification…

## 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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