# In the matter of Sagar And Vivaan Constructions Private Limited

> NCLT judgment dated 2024-12-03. Citation: TCN-2024-NCLT-00113. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Sagar…

- **Court:** NCLT
- **Order date:** 3 Dec 2024
- **Citation:** TCN-2024-NCLT-00113
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sagar-and-vivaan-constructions-private-limited-6aadae4c

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Sagar and Vivaan Construction Pvt Ltd, the Corporate Debtor, based on a petition filed by Wealth Avenue Real Estate Pvt Ltd & Ors., the Financial Creditors. The CIRP was initiated on 2024-02-29. Subsequently, the Corporate Debtor appealed to the NCLAT against the CIRP order. During the pendency of the appeal, a settlement proposal was initiated between the parties. The NCLAT allowed the Corporate Debtor to approach the Interim Resolution Professional (IRP) for filing an application for withdrawal of the CIRP under Section 12A of the Insolvency and Bankruptcy Code (IBC).

## Facts

Wealth Avenue Real Estate Pvt Ltd & Ors. initiated a CIRP against M/s. Sagar and Vivaan Construction Pvt Ltd. The CIRP was admitted on 2024-02-29. The Corporate Debtor appealed to NCLAT. A settlement proposal was initiated. The NCLAT allowed the Corporate Debtor to approach the IRP for filing an application for withdrawal under Section 12A. A Memorandum of Settlement was executed on 2024-08-08 between the financial creditors and the suspended board of directors. The financial creditors included Wealth Avenue Real Estate Pvt. Ltd., Ayaan Buildcon Pvt. Ltd., and Ansh Industries Pvt. Ltd., with admitted claims of Rs. 1,23,70,000/-, Rs. 1,21,00,000/-, and Rs. 1,21,00,000/- respectively. The CoC approved the withdrawal with 100% majority. The Corporate Debtor had

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## Issues and analysis

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

**Ratio:** Section 12A of the IBC enables the Adjudicating Authority to allow the withdrawal of an

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**Reasoning:** The court considered the Memorandum of Settlement executed between the financial

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**Interpretation:** Section 12A of the IBC provides a mechanism for withdrawal of CIRP based on

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**Application:** In this case, the financial creditors and the corporate debtor had entered into

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## Parties

- **Judges:** BIDISHA BA…; SHRI. D.A…
- **Appellants:** Wealth Avenue…
- **Respondents:** M/s. Sagar and…; Ayaan Buildcon…

## Timeline

- **2024-02-29 — Initiation…**: The Adjudicating Authority admitted the Corporate Debtor into corporate insolvency…
- **2024-03-03 — Public Annou…**: The IRP made a Public Announcement in the newspapers viz. 'Morning India' and 'Sanmarg'…

## 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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