# In the matter of Anil Chhabria Vs SBICAP Trustee Company Ltd. & Ors.

> NCLAT judgment dated 2022-04-06. Citation: TCN-2022-NCLAT-00551. The Appellant filed an application under Section 12A with Form F before the Adjudicating…

- **Court:** NCLAT
- **Order date:** 6 Apr 2022
- **Citation:** TCN-2022-NCLAT-00551
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/anil-chhabria-vs-sbicap-trustee-company-ltd-ors-668cb4d4

## Summary

### Background

The Appellant filed an application under Section 12A with Form F before the Adjudicating Authority. The Appellant and the Financial Creditor had agreed to a settlement and part payment was made. The Adjudicating Authority rejected the application under Section 12A, observing that the settlement lacked bonafide. The Appellant argues that these observations were uncalled for since the Financial Creditor agreed to the settlement and raised no objections. The Committee of Creditors (CoC) was not constituted when the Adjudicating Authority passed the order.

## Facts

Anil Chhabria, the Appellant, filed an application under Section 12A with Form F before the Adjudicating Authority seeking a settlement. Both the Appellant and the Financial Creditor, SBICAP Trustee Company Ltd., had agreed to the settlement, and part payment was made. However, the Adjudicating Authority rejected the application, stating that the settlement lacked bonafide. The Appellant contends that the Financial Creditor had agreed to the settlement without objection, and the CoC was not yet constituted when the order was passed. The claims received by the Resolution Professional were not of such relevance as to reject the settlement between the parties.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in rejecting the application under Section 12A …

**Ratio:** The ratio is based on the interpretation of Section 12A of the Insolvency and Bankruptcy

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**Reasoning:** The court's reasoning will likely focus on whether the Adjudicating Authority provided

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**Interpretation:** Section 12A allows for withdrawal of an application admitted under the IBC if

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**Application:** In this specific case, the court will apply the ratio and reasoning to

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## Parties

- **Judges:** Ashok Bh…; Alok Sriv…; +1 more
- **Appellants:** Anil Chh…
- **Respondents:** SBICAP Trustee…

## Timeline

- **2022-03-28 — Order Da…**: Further proceedings in pursuance to order…
- **2022-04-06 — Issue No…**: Issue notice. Requisites alongwith…

## 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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