# In the matter of Atharva Corrugations Pvt. Ltd. I.A. 2408-2022 in C.P.(IB)-3944(MB)-2018

> NCLT judgment dated 2022-09-05. Citation: TCN-2022-NCLT-01172. The case involves an application (I.A. 2408/2022) filed by the Interim Resolution Professional…

- **Court:** NCLT
- **Order date:** 5 Sept 2022
- **Citation:** TCN-2022-NCLT-01172
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/atharva-corrugations-pvt-ltd-ia-2408-2022-in-cpib-3944mb-2018-5960706b

## Summary

### Background

The case involves an application (I.A. 2408/2022) filed by the Interim Resolution Professional (IRP) under Section 12A of the Insolvency and Bankruptcy Code for the withdrawal of the Corporate Insolvency Resolution Process (CIRP) order. The CIRP order was initially passed on 20.07.2022 against the Corporate Debtor, Atharva Corrugations Pvt Ltd. The matter was settled between the parties through consent terms dated 24.08.2022, before the constitution of the Committee of Creditors (COC). The Corporate Debtor has paid a lump sum amount of Rs. 19,18,963/- as full and final settlement.

## Facts

The Interim Resolution Professional (IRP) filed an application (I.A. 2408/2022) under Section 12A of the Insolvency and Bankruptcy Code to withdraw the CIRP order dated 20.07.2022, which was initially passed against the Corporate Debtor, Atharva Corrugations Pvt Ltd. The parties reached a settlement on 24.08.2022, before the Committee of Creditors (COC) was formed. As part of the settlement, the Corporate Debtor paid Rs. 19,18,963/- as a lump sum for full and final settlement. The IRP confirmed receipt of CIRP costs, including his fee. The NCLT considered the settlement and the fact that the COC was not constituted. This settlement is a key fact because it forms the basis for the withdrawal application.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP order, filed by the IRP based on a settlement …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code allows for the withdrawal of CIRP under

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**Reasoning:** The court reasoned that since the parties had reached a settlement and the Corporate

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**Interpretation:** Section 12A is interpreted to allow for flexibility in cases where settlement

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** H.V. Subb…; SMT ANURADHA…
- **Respondents:** Atharva Corrugatio…

## Timeline

- **2022-07-20 — CIRP Ord…**: CIRP order passed…
- **2022-08-24 — Settleme…**: Parties entered into…

## 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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