# In the matter of Statco Infra Projects Pvt. Ltd. IA-1039(CHE)-2021 in CP-354-IB-2018

> NCLT judgment dated 2021-11-09. Citation: TCN-2021-NCLT-00577. The case involves an application (IA/1039(CHE)/2021) filed under Section 12A of the IBC, 2016,…

- **Court:** NCLT
- **Order date:** 9 Nov 2021
- **Citation:** TCN-2021-NCLT-00577
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/statco-infra-projects-pvt-ltd-ia-1039che-2021-in-cp-354-ib-2018-1b02e248

## Summary

### Background

The case involves an application (IA/1039(CHE)/2021) filed under Section 12A of the IBC, 2016, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) proceedings. The CIRP was initiated by an order dated 2020-01-10 in CP/354/IB/2018, and Mr. C. Ramasubramanian was appointed as the Interim Resolution Professional (IRP). The Corporate Debtor had filed a petition before the High Court of Madras against the CIRP order. The High Court granted an interim stay on the CIRP proceedings until 2020-02-25. Meanwhile, a Memorandum of Understanding (MOU) was agreed upon between the Petitioner and the Corporate Debtor on 2021-09-20 to settle the matter.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against a Corporate Debtor via an order dated 2020-01-10 in CP/354/IB/2018, and Mr. C. Ramasubramanian was appointed as the Interim Resolution Professional (IRP). The Corporate Debtor challenged this order by filing a petition before the High Court of Madras, which granted an interim stay on the CIRP proceedings until 2020-02-25. Subsequently, a Memorandum of Understanding (MOU) was executed between the Petitioner and the Corporate Debtor on 2021-09-20, indicating a settlement of the matter. Due to the interim stay order, the Committee of Creditors (CoC) was not constituted. An application, IA/1039(CHE)/2021, was filed under Section 12A of the IBC, 2016, seeking withdrawal of the CIRP proceedings based on

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP proceedings under Section 12A of the IBC, 2016, …

**Ratio:** Section 12A of the IBC, 2016, allows for the withdrawal of CIRP proceedings with the

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**Reasoning:** The court reasoned that since the CoC was not constituted due to the interim stay order

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**Interpretation:** Section 12A of the IBC, 2016, is interpreted to allow for flexibility in cases

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**Application:** In this case, the court applied the ratio by considering the MOU between the

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## Parties

- **Judges:** R. Sucha…; Prasanta Kumar…
- **Appellants:** C Ramasubramanian…
- **Respondents:** Statco InfraProjec…; Narendra Propertie…

## Timeline

- **2018-01-01 — CP/354/IB/201…**: CP/354/IB/2018 was filed,…
- **2020-01-10 — CIRP Ord…**: Order was issued to initiate CIRP against the Corporate Debtor in CP/354/IB/2018, and Mr.…

## 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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