# In the matter of R. D. Apparels Pvt. Ltd. IA No. 959-KB-2020 in CP (IB) No. 322-KB-2020

> NCLT judgment dated 2020-11-23. Citation: TCN-2020-NCLT-00228. The case involves an application filed by the Interim Resolution Professional (IRP) under…

- **Court:** NCLT
- **Order date:** 23 Nov 2020
- **Citation:** TCN-2020-NCLT-00228
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/r-d-apparels-pvt-ltd-ia-no-959-kb-2020-in-cp-ib-no-322-kb-2020-3aa2975b

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC) read with Regulation 30A(1)(b) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against Kingbell Properties Pvt Ltd. The public announcement for the CIRP was issued on March 19, 2020. The last date for submission of claims was March 31, 2020, later extended to September 8, 2020. Only two claims were received, one from the applicant (IRP) and another from Punjab National Bank. A Committee of Creditors (CoC) was formed with these two financial creditors. A settlement was reached with the original financial

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## Facts

Kingbell Properties Pvt Ltd faced Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated, and a public announcement was made on March 19, 2020. The last date for claim submission was initially March 31, 2020, but extended to September 8, 2020. Only two claims were received: one from the applicant (IRP) and another from Punjab National Bank. A Committee of Creditors (CoC) was formed with these two financial creditors. A settlement was reached with the original financial creditor, documented on September 19, 2020. The CoC approved the settlement with a 100% vote share. The Interim Resolution Professional (IRP) confirmed that no other claims were received from other creditors or employees, and all CIRP costs were paid. The IRP then filed an application

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC should be allowed, …

**Ratio:** Section 12A of the IBC allows for the withdrawal of CIRP with the approval of 90% voting

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**Reasoning:** The court reasoned that since the CoC had approved the settlement with a 100% vote share,

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**Interpretation:** Section 12A provides a mechanism for parties to settle disputes and withdraw

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**Application:** In this case, the CoC's 100% approval of the settlement, coupled with the IRP's

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** Kingbell Propertie…

## Timeline

- **2020-03-19 — Public Annou…**: Public announcement of the CIRP was issued in the “Business Standard and "Aajkal”…
- **2020-03-31 — Original Last Date for…**: The initial last date for…

## 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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