# In the matter of Archit Builders Pvt. Ltd. IA-999(CHE)-2023 in CP(IB)-9(CHE)2021

> NCLT judgment dated 2023-06-27. Citation: TCN-2023-NCLT-02781. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Archit…

- **Court:** NCLT
- **Order date:** 27 Jun 2023
- **Citation:** TCN-2023-NCLT-02781
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/archit-builders-pvt-ltd-ia-999che-2023-in-cpib-9che2021-6b94f6d7

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Archit Builders Pvt Ltd. The application was filed under Sections 12A and 60(5) of the IBC 2016. The Financial Creditor filed an application under Section 7 of IBC, and the Tribunal admitted the Corporate Debtor into CIRP on 13.07.2022, appointing a Resolution Professional. Subsequently, the suspended directors of the Corporate Debtor engaged in settlement talks with the Financial Creditor, IDBI Bank Ltd, and reached a compromise. The Financial Creditor intimated the Applicant about the settlement, and Form FA was submitted under Regulation 30A of the IBBI.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Archit Builders Pvt Ltd based on an application filed by the Financial Creditor under Section 7 of the IBC. The Tribunal admitted the Corporate Debtor into CIRP on 13.07.2022 and appointed a Resolution Professional. The suspended directors of the Corporate Debtor then engaged in settlement talks with the Financial Creditor, IDBI Bank Ltd, and reached a compromise. The Financial Creditor intimated the Applicant about the settlement and submitted Form FA under Regulation 30A of the IBBI on 02.06.2023. The 13th COC meeting was held on 05.06.2023, where Form FA was considered, and it was unanimously resolved to withdraw CIRP. The Applicant was authorized to file an Application to withdraw CIRP. The

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## Issues and analysis

### Issue 1: Whether the Tribunal should permit the withdrawal of the Corporate Insolvency Resolution Process …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code (IBC) allows for the withdrawal of an

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**Reasoning:** The court considered the submissions and documents, noting the voluntary nature of the

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**Interpretation:** Section 12A provides a mechanism for parties to resolve their disputes outside

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**Application:** In this case, the Financial Creditor and the Corporate Debtor reached a

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## Parties

- **Judges:** SANJIV…; SAMEER…
- **Respondents:** Archit Builders…

## Timeline

- **2021-01-01 — Main Petitio…**: CP(IB)/9(CHE)/2021…
- **2022-07-13 — CIRP Commen…**: Tribunal admitted the Corporate Debtor into Corporate Insolvency Resolution Process…

## 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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