# Aayush Prashant Agarwal vs. Uma Export Limited & Klass Insolvency Resolution Professionals Private Limited

> NCLAT judgment dated 2026-08-24. Citation: TCN-2026-NCLAT-00275. Company Appeal (AT) (Insolvency) No. 1366 of 2026 was filed by Aayush Prashant Agarwal, a…

- **Court:** NCLAT
- **Order date:** 24 Aug 2026
- **Citation:** TCN-2026-NCLAT-00275
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/aayush-prashant-agarwal-vs-uma-export-limited-klass-insolvency-resolutio-eajvl

## Summary

### Background

Company Appeal (AT) (Insolvency) No. 1366 of 2026 was filed by Aayush Prashant Agarwal, a suspended director of EPIC Yarns Pvt. Ltd. (the Corporate Debtor), challenging an NCLT order dated 23.07.2026. This NCLT order had admitted EPIC Yarns Pvt. Ltd. into the Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016, and appointed Klass Insolvency Resolution Professionals Private Limited as the Interim Resolution Professional (IRP). The Appellant and Uma Export Limited (the Operational Creditor) subsequently reached an amicable settlement, with all alleged dues being paid. An application (I.A. No. 5601 of 2026) was filed with the National Company Law Appellate Tribunal (NCLAT) for early listing of the appeal and to

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## Facts

Company Appeal (AT) (Insolvency) No. 1366 of 2026 was filed against an NCLT order dated 23.07.2026.

The NCLT order admitted M/s Epic Yarns Pvt. Ltd. (Corporate Debtor) into Corporate Insolvency Resolution Process (CIRP).

Klass Insolvency Resolution Professionals Pvt. Ltd. was appointed as the Interim Resolution Professional (IRP).

Aayush Prashant Agarwal, a suspended director of Epic Yarns Pvt. Ltd., is the appellant.

The appellant and the operational creditor, Uma Export Limited, entered into a settlement agreement dated 06.08.2026.

Dues of Rs. 50,00,000/- were paid on 23.07.2026, and an additional Rs. 2,57,05,145/- was paid on 06.08.2026 by RTGS.

I.A. No. 5601 of 2026 was filed for early listing, stating amicable settlement and full payment of dues.

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor …

**Ratio:** An application admitted under Section 7, 9, or 10 of the IBC cannot be withdrawn before

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**Reasoning:** The Tribunal noted that the settlement in the present case occurred after the initiation

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**Interpretation:** The court interpreted Section 12A strictly, particularly its sub-section (2)

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**Application:** Although the operational creditor and the corporate debtor had settled all

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## Parties

- **Judges:** Yogesh K…; Barun M…; +1 more
- **Appellants:** Aayush Prashant…
- **Respondents:** EPIC Yarns…; Uma Export…; +1 more
- **Other parties:** Analysis co…; State Bank of…; +1 more
- **Advocates:** Abhijit…; Shashank…; +9 more

## Timeline

- **2025-07-11 — Reference Case Decision…**: Date of Tribunal's decision in Basant Kumar Upadhyay, Ex-Director of Gardenia India Ltd.…
- **2025-06-28 — Settlement in Reference…**: Settlement dated in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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