# in the matter of VGS Realty Construction Pvt. Ltd. I.A. 2125-2021 in C.P. (IB)-4443(MB)-2019

> NCLT judgment dated 2021-09-29. Citation: TCN-2021-NCLT-00965. The case involves an application (I.A. 2125/2021) filed by the Interim Resolution Professional…

- **Court:** NCLT
- **Order date:** 29 Sept 2021
- **Citation:** TCN-2021-NCLT-00965
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vgs-realty-construction-pvt-ltd-ia-2125-2021-in-cp-ib-4443mb-2019-72a4bac3

## Summary

### Background

The case involves an application (I.A. 2125/2021) filed by the Interim Resolution Professional (IRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC) to withdraw the main Company Petition (4443/2019). This withdrawal is sought due to a settlement reached between the Financial Creditor and the Corporate Debtor, with consent terms entered on 17.09.2021.

## Facts

Radha Madhav Investments Pvt. Ltd. initiated a Corporate Insolvency Resolution Process (CIRP) against VGS Realty Construction Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The main Company Petition number was 4443/2019. An Interim Resolution Professional (IRP) was appointed. Subsequently, a settlement was reached between Radha Madhav Investments Pvt. Ltd. (Financial Creditor) and VGS Realty Construction Pvt. Ltd. (Corporate Debtor) on 17.09.2021. The IRP filed an application (I.A. 2125/2021) under Section 12A of the IBC to withdraw the CIRP, stating that no claims had been received and no Committee of Creditors (COC) had been constituted. The NCLT, Mumbai Bench, considered the application and the submissions made by the IRP.

## Issues and analysis

### Issue 1: Whether the application filed by the IRP under Section 12A of the IBC for withdrawal of the CIRP …

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

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**Reasoning:** The court considered the IRP's submission that a settlement had been reached between the

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

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**Application:** In this case, the IRP's application under Section 12A was deemed appropriate

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Radha Madhav…
- **Respondents:** VGS Realty…

## Timeline

- **2019-01-01 — Company Petiti…**: Main Company Petition…
- **2021-09-07 — CIRP Admissio…**: CIRP admission order passed by the…

## 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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