# In the matter of Raghuveer Metal Industries Ltd. (IB)-820(ND)-2019

> NCLT judgment dated 2019-11-22. Citation: TCN-2019-NCLT-00495. The case involves a Corporate Insolvency Resolution (CIR) process initiated under the…

- **Court:** NCLT
- **Order date:** 22 Nov 2019
- **Citation:** TCN-2019-NCLT-00495
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/raghuveer-metal-industries-ltd-ib-820nd-2019-0719367f

## Summary

### Background

The case involves a Corporate Insolvency Resolution (CIR) process initiated under the Insolvency and Bankruptcy Code (IBC). An application (CA 1454/20919) was filed by the Ex-Directors of the Corporate Debtor under Section 12(A) of the IBC, seeking termination of the CIR process. A settlement has been reached between the Corporate Debtor and the Operational Creditor, who is also the sole member of the Committee of Creditors (COC).

## Facts

The Ex-Directors of the Corporate Debtor filed an application (CA 1454/20919) seeking termination of the CIR process under Section 12(A) of the IBC. A settlement was reached between the Corporate Debtor and the Operational Creditor, who is the sole member of the COC. The IRP's counsel confirmed the settlement. The settlement involved the Operational Creditor (100%) and the Ex-Directors. The key fact is the settlement between the Corporate Debtor and the Operational Creditor, which formed the basis for the application to terminate the CIR process. The court considered this settlement and the confirmation by the IRP's counsel to allow the application.

## Issues and analysis

### Issue 1: Whether the CIR process can be terminated under Section 12(A) of the IBC based on a settlement …

**Ratio:** Section 12(A) of the IBC allows for the withdrawal of an application admitted under

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

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**Interpretation:** Section 12(A) is interpreted to allow for the termination of the CIR process

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where a

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## Parties

- **Judges:** Saroj Ra…; Ina Mal…
- **Respondents:** M/s. Rathi…
- **Advocates:** Karan G…; Dheeraj…; +1 more

## Timeline

- **2019-11-22 — Hearing…**: Hearing before the New Delhi Bench of…

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