In the matter of
- CitationCP(IB) No.43/CB/2023
Ratio decidendi
The rule this decision rests on
The Adjudicating Authority may allow withdrawal of a corporate insolvency resolution process under Section 12A of the Insolvency and Bankruptcy Code, 2016 on the basis of a settlement or consolidated deed of settlement filed by the applicant and the parties to the claims, where the claims of the intervening creditors have been settled with the corporate debtor and the consent of the requisite parties is before the Tribunal. Where the claims of intervening applicants have been settled and the intervening applications are withdrawn with the Tribunal's permission, those applications are dismissed as withdrawn. Where the Tribunal permits withdrawal of the petition under Section 12A, the amount held in deposit may be released to the financial creditor in accordance with the settlement agreement, the costs of the interim resolution professional are paid out of that deposit, and the interim resolution professional stands discharged.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
NATIONAL COMPANY LAW TRIBUNAL CUTTACK BENCH COURT No. I VC AND PHYSICAL (HYBRID) MODE ITEM No. 108 IA (IB) No. 293lC812025 IA (IB) N0.354/C812025 IVN.Pet.(IB) No.7 I CBl2025 IVN.Pet.(IB) No.8 /C812025 IA (IB) No. 389/C812025 CP (IB) No.43lC812023 CORAM: 1. SH. DEEP CHANDRA JOSHI, HON'BLE MEMBER (JUDICIAL) 2. SII. BANWARI LAL MEENA, HON'BLE MEMBER (TECHNICAL) Date of Order: 13th January, 2026 Proceedinss under Section T IBC IN THE MATTER OF: LTD. SHRESTH BUILDERS PVT. .....Applicant .VS. LTD. VIRAJAA STEEL & POWER PVT. .....Respondent PRESENT: Applicants For the : Mr. Umesh Chandra Sahoo,IRP Mr. Saroj Kumar Sahoo, CS Mr. C.R. Panda, CA For the Respondent ! Mr. Saswat Kumar Acharya, Adv. & Mr. Abhijeet Agarwal, Adv. for the R4 in Inv 7 & 8 ORDER IA (IB) No. 354/CBl202s Ld. Counsel Mr. Umesh Chandra Sahoo, IRP has moved this application under Section 12 (A) of IBC for withdrawal of the Company Petition. gA qa?
13th January, 2026 Litali Dash (Stenographer)
Ld. CA, Mr. Chittamajan Panda appeared on behalf of intervener and filed IVN.PeI.(IB) No.7lCBl2025 on behalf of BSR Finance Construction Ltd. and IVN.Pet.(IB) No.8/CB/2025 on behalf of Secure Media Entertainment Consultancy Management Pvt. Ltd. Hon'ble NCLAT has directed to the interveners to raise their issue before NCLT Bench, Cuttack. Today a consolidated deed of settlement has been filed by 1. BSR Finance Construction Ltd, 2. Soouro Media Entsrtainment Consultanoy Managoment Pyt, Ltd. and 3. Viraja Steel & Power P\4. Ltd. Since, claim of the intervener has been settled with the Corporate Debtor. Ld. Counsel for the interveners seeks to withdraw his application. Permission granted. IVN.Pet.(IB) No.7lCBl2025 and IVN.PeI.(IB) No.8/CB/2025 are dismissed as withdrawn. Section 12 (A) application has been filed by Mr. Umesh Chandra Sahoo, Interim Resolution Professional of Viraja Steel & Power Pvt. Ltd. fiIed under Section 12 (A) of the IBC, 2016 read with Regulation 13 of IBBI (CIRP Regulation,2016) seeking withdrawal of the CIRP initiated against the Corporate Debtor. CIRP was admitted by this adjudicating authority vide order dated 09.09.2025 passed in CP (IB) No. 431C812023 onan application filed by Ms Shresth Builders Pvt. Ltd. under Section 7 of the Code. Mr. Umesh Chandra Sahoo was appointed as the Interim Resolution Professional. Aggrieved by the admission order the suspended Director/Shareholder preferred an appeal before the Hon'ble NCLAT, New Delhi. Hon'ble NCLAT vide interim order dated 24.09.2025 directed that committee of creditors if not constituted as on date, shall not be constituted till the next date and no further steps be taken in the CIRP. In the operative portion of the order Hon'ble NCLAT also directed that after the acceptance of the settlement proposal or disposal of the application under Section 12(A) of the Code which would be filed by the parties before the Ld. NCLT, the amount of Rs. 1,18,88,924 which is deposited with the registrar of this Tribunal may be dealt with as per the orders which may be passed by the Ld. NCLT with regard to the application moved under Section 12 (A) of the Code. gA gA?
73th January, 2026 Litctli Dash (Stenographer)
With the application under Section 12 (A) the Applicant has filed settlement memo, para 7 (C) of the same provides that Financial Creditor be pennitted to receive the fixed deposit amount of Rs. I 8,88,92 4 lying with the registry. 1, In view of the above submissions applications under Section 12 (A) filed by the application is allowed and CP (IB) No. 43lC812023 is dismissed as withdrawn. The fixed deposit amount deposited with the registry of the NCLAT, New Delhi shall bo reoeived by the Finanoial Creditor as per tho settlement agreement, CzuP cost has been paid to the IRP and IRP is discharged from his assignment as IRP in this present matter.
n C47 5 ,{ Banwari Lal Meena Deep Cha:ndra Joshi Member (Technical) Member (Judicial)
13th January, 2026 Litali Dash (Stenographer)
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