# In the matter of Aanchal Cement Ltd. IA(I.B.C)-507(KB)2022 in C.P. (IB)-145(KB)2021

> NCLT judgment dated 2022-06-08. Citation: TCN-2022-NCLT-02325. The case involves an application under Section 12A of the Insolvency and Bankruptcy Code (IBC)…

- **Court:** NCLT
- **Order date:** 8 Jun 2022
- **Citation:** TCN-2022-NCLT-02325
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aanchal-cement-ltd-iaibc-507kb2022-in-cp-ib-145kb2021-d1985bfc

## Summary

### Background

The case involves an application under Section 12A of the Insolvency and Bankruptcy Code (IBC) read with regulation 30A(1)(a) of the Corporate Insolvency Resolution Process (CIRP) regulations for the closure of the CIRP initiated against Aanchal Cement Ltd. The application was filed prior to the constitution of the Committee of Creditors (CoC) and is based on a settlement between the Members of Suspended Board and the petitioning Operational Creditor. The CIRP was initiated vide order dated 18.05.2022.

## Facts

An application was filed under Section 12A of the IBC for the closure of the CIRP initiated against Aanchal Cement Ltd. The CIRP was initiated on 18.05.2022. The application for closure was filed before the constitution of the Committee of Creditors (CoC). The basis for the application was a settlement agreement dated 31.05.2022 between the Members of Suspended Board and the petitioning Operational Creditor. The IRP stated that there were two other claims against the Corporate Debtor. The settlement agreement envisages future payments up to 10.05.2024. The court considered the Supreme Court's judgment in Swiss Ribbons Private Limited vs. Union of India, which allows parties to approach the NCLT directly for withdrawal or settlement before the CoC is constituted.

## Issues and analysis

### Issue 1: Whether the application for closure of CIRP under Section 12A of the IBC can be allowed before the …

**Ratio:** The Supreme Court in Swiss Ribbons Private Limited vs. Union of India held that at any

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**Reasoning:** The court reasoned that since the CoC had not yet been constituted, the settlement

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**Interpretation:** This interprets Section 12A of the IBC in conjunction with the principles laid

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**Application:** The ratio was applied to the facts of the case, where the application for

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** RITU KEJ…
- **Respondents:** AANCHAL CEM…

## Timeline

- **2022-05-18 — CIRP Init…**: CIRP initiated against the Corporate…
- **2022-05-21 — Public Notice…**: Public Notice issued, leading to…

## 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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