# In the matter of Ishwar Constructions Private Limited

> NCLT judgment dated 2024-10-08. Citation: TCN-2024-NCLT-00468. The case involves an application filed by the Corporate Debtor seeking recall of the admission…

- **Court:** NCLT
- **Order date:** 8 Oct 2024
- **Citation:** TCN-2024-NCLT-00468
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ishwar-constructions-private-limited-183e23f6

## Summary

### Background

The case involves an application filed by the Corporate Debtor seeking recall of the admission order dated 08.10.2024. The matter has been settled between the parties out of court, and an OTS (One Time Settlement) has been approved by the Financial Creditor.

## Facts

Ishwar Constructions Pvt Ltd (Corporate Debtor) filed an application seeking recall of the admission order dated 08.10.2024. The basis for the recall is that the matter has been settled out of court with LIC Housing Finance Ltd (Financial Creditor), and an OTS has been approved. The applicant's counsel suggested filing an application under Section 12A of the IBC, which allows for withdrawal of insolvency proceedings under certain conditions. The court considered this submission and granted the applicant time to either amend the existing application or file a new one under Section 12A. The IRP was directed to refrain from forming the CoC in the interim. The relevance of the settlement and OTS approval is that it provides a basis for withdrawing the insolvency

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## Issues and analysis

### Issue 1: Whether the application for recall of the admission order should be granted based on the settlement …

**Ratio:** The legal principle is that a settlement between parties, especially when an OTS is

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**Reasoning:** The court acknowledged the settlement and OTS approval but required the applicant to

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**Interpretation:** Section 12A of the IBC provides a mechanism for withdrawing an application

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**Application:** The court applied this principle by allowing the applicant time to file an

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## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Respondents:** Ishwar Constructio…

## Timeline

- **2024-10-08 — Admission Ord…**: Date of the admission order that the…
- **2024-10-08 — IRP Appointme…**: Date of the order appointing the IRP…

## 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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