# In the matter of Bajwa Developers Ltd.

> NCLT judgment dated 2023-07-18. Citation: TCN-2023-NCLT-02459. The case involves an application for withdrawal of a Company Petition admitted for initiation…

- **Court:** NCLT
- **Order date:** 18 Jul 2023
- **Citation:** TCN-2023-NCLT-02459
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bajwa-developers-ltd-98a5f55e

## Summary

### Background

The case involves an application for withdrawal of a Company Petition admitted for initiation of CIRP of the corporate debtor, Bajwa Developers Ltd. The application was filed under Section 12A of the IBC, 2016 read with Regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency and Bankruptcy Resolution Process for Corporate Persons) Regulations, 2016. The parties have arrived at a compromise, and a compromise-settlement deed has been placed on record.

## Facts

Rajinder Infrastructure Pvt. Ltd. filed a CP(IB) No. 124/Chd/Pb/2021 against Bajwa Developers Ltd., which was admitted. Subsequently, an application (IA No. 1559/2023) was filed under Section 12A of the IBC, 2016, read with Regulation 30A of the IBBI Regulations, seeking withdrawal of the CIRP due to a compromise reached between the parties. A compromise-settlement deed was placed on record. The CoC had not been constituted. The entire amount was paid to the operational creditor. IA No. 1558/23 was filed by the Suspended Board of Directors and was disposed of as infructuous. The key fact is the compromise reached between the operational creditor and the corporate debtor, leading to the application for withdrawal of the CIRP. The payment of the entire amount to the

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC, 2016, should be …

**Ratio:** Section 12A of the IBC, 2016, read with Regulation 30A of the IBBI Regulations, allows

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**Reasoning:** The court considered the submissions of the learned counsel for the Resolution

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**Interpretation:** Section 12A provides a mechanism for parties to settle their disputes and

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**Application:** In this case, the court found that the parties had indeed reached a compromise,

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## Parties

- **Judges:** SUBRATA KUM…; Harnam Singh…
- **Appellants:** Rajinder Infrastru…
- **Respondents:** Bajwa Developers…

## Timeline

- **2021-01-01 — CP(IB) F…**: CP(IB) No. 124/Chd/Pb/2021 filed by Rajinder Infrastructure Pvt. Ltd. against Bajwa…
- **2023-04-07 — Order Da…**: Order date mentioned for initiation…

## 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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