# In the matter of Arcons Infrastructures and Constructions Private Limited

> NCLT judgment dated 2024-02-22. Citation: TCN-2024-NCLT-02467. The case involves an application (IA 618/2024) in a Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 22 Feb 2024
- **Citation:** TCN-2024-NCLT-02467
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/arcons-infrastructures-and-constructions-private-limited-a95aa0b3

## Summary

### Background

The case involves an application (IA 618/2024) in a Corporate Insolvency Resolution Process (CIRP) initiated under the Insolvency and Bankruptcy Code, 2016. The National Company Law Appellate Tribunal (NCLAT) had previously issued an order stating that if the Corporate Debtor pays the amount due to the Financial Creditor along with interest until the insolvency commencement date, the CIRP would be withdrawn.

## Facts

The India Factoring and Finance Solutions Private Limited initiated a CIRP against Arcons Infrastructure and Construction Private Limited. The NCLAT issued an order stating that if Arcons Infrastructure and Construction Private Limited paid the amount due to India Factoring and Finance Solutions Private Limited, along with interest until the insolvency commencement date, the CIRP would be withdrawn. The Financial Creditor, India Factoring and Finance Solutions Private Limited, confirmed that Arcons Infrastructure and Construction Private Limited complied with the NCLAT's order. The relevance of these facts is that the compliance with the NCLAT order directly led to the withdrawal of the CIRP and the termination of the IRP's role.

## Issues and analysis

### Issue 1: Whether the CIRP should be withdrawn given the Corporate Debtor's compliance with the NCLAT's order …

**Ratio:** When a corporate debtor complies with the conditions set by a higher court (NCLAT in this

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**Reasoning:** The court reasoned that since the Financial Creditor confirmed that the Corporate Debtor

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**Interpretation:** This interprets the NCLAT's order as a conditional directive, where compliance

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**Application:** Since Arcons Infrastructure and Construction Private Limited complied with the

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## Parties

- **Judges:** SH. PRABHAT…; V.G. B…
- **Respondents:** ARCONS INFRASTRCTU…

## Timeline

- **2023-07-04 — NCLAT Or…**: The National Company Law Appellate Tribunal (NCLAT) passed an order stating that if the…
- **2024-02-22 — Hearing…**: Order sheet of 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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