Allowed

In the matter of Aanchal Cement Ltd. IA(I.B.C)-507(KB)2022 in C.P. (IB)-145(KB)2021

NCLT8 Jun 2022

Case brief

AI extract

What is this about?

The Division Bench of the NCLT Kolkata Bench allowed an application under Section 12A of the IBC for closure of CIRP against Aanchal Cement Ltd. based on a settlement reached before CoC constitution. The court recalled the CIRP, restored the Board of Directors, and directed the IRP to hand over assets.

What did the court decide?

The CIRP was recalled, the Board of Directors was restored to original position, and the IRP directed to hand over Corporate Debtor and assets.

In the matter of Aanchal Cement Ltd… — Insolvency and Bankruptcy | NCLT (2022)

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DIVISION BENCH COURT - I

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NATIONAL COMPANY LAW TRIBUNAL KOLKATA BENCH KOLKATA

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C.P. (IB)/145(KB)2021 IA(I.B.C)/507(KB)2022

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CORAM: 1. HON’BLE MEMBER(J), SHRI RAJASEKHAR V.K. 2. HON’BLE MEMBER(T), SHRI BALRAJ JOSHI

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ATTENDANCE-CUM-ORDER SHEET OF THE HEARING ON 08^TH JUNE, 2022, 10:30 A.M

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IN THE MATTER OF UNDER SECTION

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RITU KEJRIWAL VS AANCHAL CEMENT LTD IBC UNDER SEC 9

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Appearances (via video conference)/physically For Operational Creditor Mr. Mainak Bose, Adv. Mr. Kanishk Kejriwal, adv. Mr. Debashish Sharma, Adv.

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Ms. Mamta Binani, IRP in person

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For Member of Suspended Board of Director of Corporate Debtor Ms. Urmila Chakrabory, Adv. Mr. P Sharma, Adv.

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ORDER

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IRP present in person. Mr. Kanishk Kejriwal present on behalf of the Operational Creditor. Ms. Urmila Chakraborty, Ld. Counsel present on behalf of the Corporate Debtor.

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IA(I.B.C)/507(KB)2022

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This is an application under sec. 12A read with regulations 30A(1)(a) of the Corporate Insolvency Resolution Process (CIRP) regulations for closure of the CIRP initiated against the Corporate Debtor vide order dated 18.05.2022.

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The application has been filed prior to the constitution of the Committee of Creditors (CoC) based on the settlement arrived at between the Members of Suspended Board and the petitioning Operational Creditor. The settlement Agreement dated 31.05.2022

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has been placed on record. The Settlement Agreement envisages future payments up to 10.05.2024.

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The IRP submits that there are two other claims at this point of time in response to the Public Notice issued on 21.05.2022. These claims are from Karur Vysya Bank Ltd. and Commissioner of Commercial Taxes, WB. Ld. Sr. Counsel appearing for the applicant submits that in terms of para 52 of the judgment of the Hon’ble Supreme Court in Swiss Ribbons Private Limited and another vs. Union of India and Others (para 52 of the original judgment of the Hon’ble Supreme Court) at any stage where the Committee of Creditors is not yet constituted, a party can approach the National Company Law Tribunal (NCLT) directly which Tribunal may in exercise of its inherent powers under Rule 11 of the NCLT Rules , 2016 allow or disallow an application for withdrawal or settlement which will be decided after hearing the concerned parties and considering all relevant factors on the facts of each case.

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We have perused the application and heard the IRP appearing for the applicant, Ld. Counsel appearing on behalf of the Operational Creditor and Ld. Counsel appears for the member of the Suspended Board. Looking into the facts and circumstances, there may be no impediment in allowing the present application. Also, the fees of the IRP are stated to have been paid in full.

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In view of the above, we hereby allow the I.A. 507(KB) 2022 and pass the following orders: -

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a. The CIRP initiated vide order dated 18.05.2022 is hereby recalled and the Corporate Debtor is freed from the rigours of the CIRP.

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b. The Board of Directors of the Corporate Debtor is restored to its original position

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c. The IRP is hereby directed to handover the Corporate Debtor and all its assets and documents back to the restored Board of Directors of the Corporate Debtor, under proper acknowledgement.

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