# In the matter of RMB Event Management Private Limited IA 2089-2021 in CP (IB) 576(MB)2019

> NCLT judgment dated 2021-09-27. Citation: TCN-2021-NCLT-00986. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 27 Sept 2021
- **Citation:** TCN-2021-NCLT-00986
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rmb-event-management-private-limited-ia-2089-2021-in-cp-ib-576mb2019-95370126

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor. The applicant/IRP filed IA 2089/2021 under Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and Rule 8 of the Insolvency and Bankruptcy Code. The CIRP was initiated vide order dated 07.09.2021.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor. The applicant/IRP filed an application (IA 2089/2021) seeking directions for withdrawal of the CIRP under Section 12A of the Insolvency and Bankruptcy Code, 2016. The basis for the withdrawal application was a formal settlement agreement dated 11.08.2021 between the Petitioner and the Corporate Debtor, where the Corporate Debtor agreed to pay Rs. 1,57,00,000/- in full and final settlement. The settlement amount was to be paid according to a schedule, with payments made via Bank of India cheques. A portion of the settlement (Rs. 5,23,000/-) was designated for TDS to be credited to the Petitioner No. 1 with the Central Government. The initial order initiating CIRP was dated

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) can be withdrawn based on a settlement …

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

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**Reasoning:** The court considered the settlement agreement reached between the Petitioner and the

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

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**Application:** In this case, the court applied Section 12A and Regulation 30A to allow the

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## Parties

- **Judges:** Ashok Kumar…; Shyam Babu…
- **Respondents:** Anand Vihar…; RMB Event…

## Timeline

- **2021-08-11 — Settlement Ag…**: Petitioner and Corporate Debtor entered…
- **2021-08-10 — First Pa…**: Rs. 31,00,000/- paid before…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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