# In the matter of M.U. Buildcon Pvt. Ltd.

> NCLT judgment dated 2023-10-30. Citation: TCN-2023-NCLT-00995. The case involves an application (IA-5773/2023) heard by the National Company Law Tribunal…

- **Court:** NCLT
- **Order date:** 30 Oct 2023
- **Citation:** TCN-2023-NCLT-00995
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/mu-buildcon-pvt-ltd-c1ae5eb3

## Summary

### Background

The case involves an application (IA-5773/2023) heard by the National Company Law Tribunal (NCLT), New Delhi Bench, regarding the corporate insolvency resolution process (CIRP) of M U Buildcon Pvt. Ltd. Vinsan Credit & Securities Limited is the applicant/petitioner. The Committee of Creditors (CoC) had passed a resolution on 04.09.2023 approving a settlement proposal submitted by the power suspended Directors of the Corporate Debtor.

## Facts

Vinsan Credit & Securities Limited initiated CIRP against M U Buildcon Pvt. Ltd. under Section 7 of the IBC, 2016. The Committee of Creditors (CoC) approved a settlement proposal from the erstwhile management of M U Buildcon Pvt. Ltd. The settlement involved an initial payment of 5% of the principal amount to the financial creditors, including Vinsan Credit & Securities Limited, Parsee Leasing And Finvest Limited, and Dayal Finsec Limited, via cheques. The resolution outlined a schedule for paying the remaining principal amount in installments by specific dates, with interest implications for defaults. The CoC also authorized the filing of a withdrawal application under Section 12A of the IBC. The applicant sought withdrawal of the CIRP based on the settlement

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the Insolvency and …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Regulation 30A of the

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**Reasoning:** The court considered the averments made in the application and the submissions put forth

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if the Adjudicating

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**Application:** In this case, the CoC had approved a settlement proposal where the erstwhile

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## Parties

- **Judges:** SH. ASHOK KUMAR…; L. N. G…
- **Appellants:** Vinsan Credit &…
- **Respondents:** MU Buildcon Pvt.…

## Timeline

- **2023-09-04 — CoC Resol…**: The Committee of Creditors passed a resolution approving the settlement proposal…
- **2023-10-30 — Order Del…**: The NCLT delivered the order allowing IA-5773/2023 and dismissing IB-258/ND/2023 as…

## 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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