# Aayush Prashant Agarwal vs. Uma Export Limited & Anr.

> NCLAT judgment dated 2026-08-24. Citation: TCN-2026-NCLAT-00251. A Corporate Insolvency Resolution Process (CIRP) was initiated against Epic Yarns Private…

- **Court:** NCLAT
- **Order date:** 24 Aug 2026
- **Citation:** TCN-2026-NCLAT-00251
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ts-party-aayush-prashant-agarwal-vs-epic-yarns-private-limited-1ct4r

## Summary

### Background

A Corporate Insolvency Resolution Process (CIRP) was initiated against Epic Yarns Private Limited (Corporate Debtor) by an NCLT order dated 23.07.2026, based on an application under Section 9 of the IBC. The suspended director, Aayush Prashant Agarwal, appealed this order. During the appeal, the appellant and the operational creditor (Uma Export Limited) reached an amicable settlement, with all alleged dues being paid. An application (I.A. No. 5601 of 2026) was filed to inform the Tribunal of the settlement and seek early listing and termination of the CIRP.

## 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) under Section 9 of IBC, 2016.

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

On 30.07.2026, the Appellant's counsel informed the Tribunal about ongoing settlement talks between the parties.

On 10.08.2026, I.A. No. 5601 of 2026 was filed for early listing of the appeal, stating that the matter had been amicably settled and all alleged dues paid.

The counsel for the Respondent-Creditor affirmed the submission of settlement.

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## Issues and analysis

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

**Ratio:** The NCLAT held that while a settlement has occurred, the withdrawal of CIRP is subject to

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**Reasoning:** The settlement took place after the CIRP was initiated (23.07.2026 vs. 06.08.2026

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**Interpretation:** The NCLAT interpreted Section 12A to mean that even with a settlement, the

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**Application:** The NCLAT applied Section 12A by directing the IRP to make an appropriate

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## Parties

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

## Timeline

- **2026-04-06 — IBC (Amendment Act,…**: The IBC (Amendment Act, 2026, Act No. 6 of…
- **2026-05-26 — Section 12A Amendment…**: The amendment in Section 12A…

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