# In the matter of Rajhans Industries Ltd. IA No. 318-JPR-2021 in CP No. (IB)-235-7-JPR-2019

> NCLT judgment dated 2021-11-09. Citation: TCN-2021-NCLT-00559. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 9 Nov 2021
- **Citation:** TCN-2021-NCLT-00559
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rajhans-industries-ltd-ia-no-318-jpr-2021-in-cp-no-ib-235-7-jpr-2019-b0ed9bd8

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against M/S Rajhans Industries Pvt. Ltd. The CIRP was initiated under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application for withdrawal was filed under Section 12-A of the IBC, read with Regulation 30-A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The CIRP application was admitted on 05.08.2021. An appeal against the admission order was filed before the NCLAT by Mr. Jugal Kishore Parihar, a suspended director of the Corporate Debtor. Subsequently, a settlement was reached between the parties, and the Resolution Professional (RP) sought the approval of the Committee of Creditors (CoC) for the

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## Facts

M/S Nand Kishore Parihar & Ors. filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/S Rajhans Industries Pvt. Ltd. The CIRP application was admitted on 05.08.2021. Jugal Kishore Parihar, a suspended director of the Corporate Debtor, filed an appeal before the NCLAT against the admission order. Subsequently, Jugal Kishore Parihar expressed willingness to pay Rs. 29,50,583 to Nand Kishore Parihar. The Resolution Professional (RP) convened a meeting of the Committee of Creditors (CoC), which approved the withdrawal of the CIRP application with 95.25% voting. Nand Kishore Parihar submitted Form-FA as per Section 12-A of the IBC. The NCLAT granted a stay on the CIRP proceedings. The RP sought consideration of the

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP against M/S Rajhans Industries Pvt. Ltd. should …

**Ratio:** Section 12-A of the IBC, read with Regulation 30-A of the IBBI (Insolvency Resolution

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**Reasoning:** The court reasoned that the conditions for withdrawal under Section 12-A of the IBC were

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**Interpretation:** Section 12-A provides a mechanism for withdrawing a CIRP application when a

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**Application:** In this case, the court applied the provisions of Section 12-A to the facts

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## Parties

- **Judges:** Deep Chandr…; RAGHU N…; +1 more
- **Appellants:** Prashant A…
- **Respondents:** M/S Rajhans…; Nand Kishore…

## Timeline

- **2021-05-08 — CIRP Admi…**: CIRP application against M/S Rajhans…
- **2021-09-03 — First CoC M…**: First meeting of the Committee…

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