# In the matter of Bengal Shelter Housing Development Ltd. IA(I.B.C)-607(KB)2022 in C.P. (IB)-1680(KB)2019

> NCLT judgment dated 2022-06-28. Citation: TCN-2022-NCLT-02015. The case involves an application for withdrawal of a Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 28 Jun 2022
- **Citation:** TCN-2022-NCLT-02015
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bengal-shelter-housing-development-ltd-iaibc-607kb2022-in-cp-ib-1680kb2019-9cfe696c

## Summary

### Background

The case involves an application for withdrawal of a Corporate Insolvency Resolution Process (CIRP) initiated against Bengal Shelter Housing Development Ltd. by Usha Martin Ltd. The application was filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, read with regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and Rule 11 of the NCLT Rules, 2016. The Interim Resolution Professional (IRP), Mr. Jai Narayan Gupta, sought the withdrawal as the matter had been amicably settled between the parties.

## Facts

Usha Martin Ltd. initiated a CIRP against Bengal Shelter Housing Development Ltd. The CIRP was admitted on 2022-06-22, and Mr. Jai Narayan Gupta was appointed as the Interim Resolution Professional (IRP). Subsequently, the parties reached an amicable settlement, with Bengal Shelter Housing Development Ltd. transferring Rs. 33,27,750 to Usha Martin Ltd. The IRP filed an application under Section 12A of the IBC, 2016, seeking withdrawal of the CIRP. The Operational Creditor confirmed the settlement through Form FA. The IRP's fees and costs were paid in full by the petitioning Operational Creditor. Newspaper publication had not been made, and the Committee of Creditors was not constituted. There were no other outstanding claims against the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

**Ratio:** Section 12A of the IBC, 2016, allows for the withdrawal of a CIRP application with the

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**Reasoning:** The court reasoned that since the parties had amicably settled the matter, and the IRP's

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**Interpretation:** Section 12A is interpreted to facilitate settlements between the parties,

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**Application:** In this case, the court applied Section 12A and Regulation 30A to allow the

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## Parties

- **Judges:** Rohit K…; Harish Chander…; +1 more
- **Appellants:** Usha Mart…
- **Respondents:** Bengal Shelter…

## Timeline

- **2022-06-22 — Admission of Petition…**: The petition was admitted, and Mr. Jai Narayan Gupta was appointed as the Interim…
- **2022-06-23 — Settlement between…**: The matter was settled between the parties by bank transfer of Rs.33,27,750/- to the…

## 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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