# 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-02181. The case involves an application filed by Asset Reconstruction Company (India) Limited, the…

- **Court:** NCLT
- **Order date:** 7 May 2021
- **Citation:** TCN-2021-NCLT-02181
- **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-a7d78e8b

## 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 in terms of a settlement reached between the Committee of Creditors (CoC) and the suspended board of directors of Mohan Jute Mills Limited, the Corporate Debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor based on an application filed by Asset Reconstruction Company (India) Limited under section 7 of the Insolvency and Bankruptcy Code, 2016, with Mr. Kamal Nayan Jain appointed as the RP.

## Facts

Asset Reconstruction Company (India) Limited, the Financial Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Raigarh Properties Private Limited, the Corporate Debtor, 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 Resolution Professional (RP). During the CIRP, the RP received Resolution Plans, which were presented to the CoC. Simultaneously, the suspended board of directors challenged the admission of the Corporate Debtor into CIRP before the NCLAT, but the appeal was dismissed on 26.03.2021. Subsequently, the Applicant received a settlement proposal dated 31.03.2021 from the suspended board of directors. The Applicant entered into

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of the Company Petition bearing CP No. …

**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 Applicant and the Corporate Debtor reached a settlement, and

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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 the Corporate Debtor…
- **2020-02-27 — Appointment…**: Mr. Kamal Nayan Jain was appointed as the Resolution Professional (RP) of the Corporate…

## 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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