# In the matter of Raigarh Properties Private Limited IA No. 446-KB-2021 in CP No. 432-KB-2019

> NCLT judgment dated 2021-05-07. Citation: TCN-2021-NCLT-02179. The case involves an application filed by Asset Reconstruction Company (India) Limited, the…

- **Court:** NCLT
- **Order date:** 7 May 2021
- **Citation:** TCN-2021-NCLT-02179
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/raigarh-properties-private-limited-ia-no-446-kb-2021-in-cp-no-432-kb-2019-97bfeddb

## Summary

### Background

The case involves an application filed by Asset Reconstruction Company (India) Limited, the Financial Creditor, to dispose of the underlying Company Petition bearing CP No. 432/KB/2019. The Corporate Insolvency Resolution Process (CIRP) was initiated against Raigarh Properties Private Limited based on an application filed by Asset Reconstruction Company (India) Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated vide order dated 27.02.2020. During the CIRP, the Resolution Professional (RP) received resolution plans, which were presented to the Committee of Creditors (CoC). Simultaneously, the suspended board of directors challenged the admission of the Corporate Debtor into CIRP before the NCLAT, which was dismissed on 26.03.2021.

## Facts

Asset Reconstruction Company (India) Limited, the Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Raigarh Properties Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated vide order dated 27.02.2020. Mr. Kamal Nayan Jain was appointed as the RP. During the CIRP, resolution plans were received and presented to the CoC. The suspended board of directors challenged the CIRP admission order before NCLAT, which was dismissed on 26.03.2021. A settlement proposal was received from the suspended board of directors on 31.03.2021, leading to negotiations. The CoC approved the withdrawal of the Company Petition with 100% votes in favor. A sum of Rs.14.83 crore was paid by the members of the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of an application admitted under …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows the Adjudicating

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**Reasoning:** The court reasoned that the CoC had approved the withdrawal of the underlying Company

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**Interpretation:** Section 12A provides a mechanism for settling disputes and withdrawing CIRP

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**Application:** In this case, the CoC approved the withdrawal with 100% votes, and the

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Asset Reconstructi…
- **Respondents:** Raigarh Properties…

## Timeline

- **2020-02-27 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated against Raigarh Properties…
- **2021-03-26 — NCLAT Dis…**: The Hon'ble NCLAT dismissed the appeal challenging the admission of the Corporate Debtor…

## 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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