# In the matter of Senior Builders Pvt. Ltd. (IB)-727(PB)-2018

> NCLT judgment dated 2019-03-11. Citation: TCN-2019-NCLT-04512. This case involves an application filed under Rule 11 of the National Company Law Tribunal,…

- **Court:** NCLT
- **Order date:** 11 Mar 2019
- **Citation:** TCN-2019-NCLT-04512
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/senior-builders-pvt-ltd-ib-727pb-2018-99c06992

## Summary

### Background

This case involves an application filed under Rule 11 of the National Company Law Tribunal, 2016, by the Financial Creditor seeking to withdraw the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor. The CIRP was initiated vide C.P. No. (IB)-727(PB)/2018 on 26.02.2019. The application for withdrawal is based on a memorandum of understanding (MoU) executed between the applicant-financial creditor and the non-applicant-corporate debtor.

## Facts

G.S.T Promoters Pvt. Ltd. initiated a Corporate Insolvency Resolution Process (CIRP) against Senior Builders Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was initiated via C.P. No. (IB)-727(PB)/2018 on 2019-02-26. Subsequently, G.S.T Promoters Pvt. Ltd. filed an application (CA-425(PB)/2019) under Rule 11 of the National Company Law Tribunal Rules, 2016, seeking to withdraw the CIRP based on a memorandum of understanding (MoU) reached with Senior Builders Ltd. The Resolution Professional, Mr. Anup Kumar, confirmed that a public notice was issued inviting claims, but the Committee of Creditors (CoC) had not been constituted, and all professional fees and expenses were paid. The application was allowed, and the CIRP was closed.

## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) can be withdrawn based on a memorandum …

**Ratio:** The Supreme Court's judgment in Swiss Ribbons Pvt. Ltd. & Anr.(supra), particularly

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**Reasoning:** The court reasoned that since the Committee of Creditors (CoC) had not yet been

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**Interpretation:** The legal issue revolves around the interpretation of the Insolvency and

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**Application:** In this case, the court applied the ratio and reasoning by allowing the

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** G.S.T Promoters…
- **Respondents:** Senior Builders…

## Timeline

- **2018-01-01 — Civil Appeal No…**: Supreme Court rendered judgment in the case of Civil Appeal No. 99/2018 dated 25.01.2019…
- **2019-02-26 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated against Senior Builders Ltd. via…

## 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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