# In the matter of

> NCLT judgment dated 2026-01-13. Citation: TCN-2026-NCLT-00110. Shresth Builders Pvt. Ltd. initiated CIRP against Virajaa Steel & Power Pvt. Ltd. under Section…

- **Court:** NCLT
- **Order date:** 13 Jan 2026
- **Citation:** TCN-2026-NCLT-00110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-cuttack/f304dfe3

## Summary

### Background

Shresth Builders Pvt. Ltd. initiated CIRP against Virajaa Steel & Power Pvt. Ltd. under Section 7 of the IBC. The CIRP was admitted, and Mr. Umesh Chandra Sahoo was appointed as the Interim Resolution Professional (IRP).

## Facts

CIRP was initiated against Virajaa Steel & Power Pvt. Ltd. by Shresth Builders Pvt. Ltd. under Section 7 of the IBC.

Mr. Umesh Chandra Sahoo was appointed as the Interim Resolution Professional (IRP).

An application under Section 12(A) of the IBC was filed seeking withdrawal of the CIRP.

Interveners sought to withdraw their applications as their claims were settled with the Corporate Debtor.

The NCLT allowed the withdrawal application and dismissed the CIRP.

The fixed deposit amount was directed to be released to the Financial Creditor as per the settlement agreement.

Hon'ble NCLAT directed that committee of creditors if not constituted as on date, shall not be constituted till the next date and no further steps be taken in the CIRP.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP …

**Ratio:** Section 12(A) of the IBC allows for the withdrawal of CIRP with the approval of the

…

**Reasoning:** The Applicant filed a settlement memo, and the interveners settled their claims with the

…

**Interpretation:** The Adjudicating Authority has the discretion to allow the withdrawal of CIRP

…

**Application:** The NCLT allowed the application for withdrawal under Section 12(A) after

…

## Parties

- **Judges:** Deep Chandr…; Banwari Lal…
- **Appellants:** Suspended…; Shresth Builders…
- **Respondents:** Virajaa Steel &…
- **Other parties:** Umesh Chandra…
- **Advocates:** Saswat Kumar…; Abhijeet A…

## Timeline

- **2026-01-13 — Date of…**: Order passed by the NCLT…
- **2025-09-09 — CIRP Admissi…**: CIRP was admitted by this adjudicating authority vide order dated 09.09.2025 passed in CP…

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