# In the matter of Abhinandan Dyeing Pvt. Ltd. I.A.(IB)No.976-KB-2020 In CP(IB)No.862-KB-2019

> NCLT judgment dated 2020-11-02. Citation: TCN-2020-NCLT-00317. The case involves an application for withdrawal of a Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 2 Nov 2020
- **Citation:** TCN-2020-NCLT-00317
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abhinandan-dyeing-pvt-ltd-iaibno976-kb-2020-in-cpibno862-kb-2019-e168e223

## Summary

### Background

The case involves an application for withdrawal of a Corporate Insolvency Resolution Process (CIRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC). The matter was initiated by Dychem International Pvt. Ltd. against Abhinandan Dyeing Pvt. Ltd. An application, IA(IB) No. 976/KB/2020, was filed for the withdrawal of the CIRP based on a settlement agreement between the parties.

## Facts

Dychem International Pvt. Ltd. initiated a Corporate Insolvency Resolution Process (CIRP) against Abhinandan Dyeing Pvt. Ltd. An Interim Resolution Professional (IRP) was appointed. Subsequently, the parties reached a settlement agreement dated 2020-03-12 before the formation of the Committee of Creditors (CoC) under Section 21 of the IBC. Based on this settlement, an application (IA(IB) No. 976/KB/2020) was filed under Section 12A of the IBC for withdrawal of the CIRP. The Operational Creditor had no objection to the withdrawal, confirming the amicable settlement. The key fact is the settlement agreement reached before the CoC formation, leading to the withdrawal application.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

**Ratio:** Section 12A of the IBC allows for the withdrawal of a CIRP application if the

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**Reasoning:** The court reasoned that since the parties had settled the matter out of the Tribunal and

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**Interpretation:** Section 12A is interpreted to mean that if a settlement is reached before the

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**Application:** In this case, the parties reached a settlement agreement before the formation

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## Parties

- **Judges:** Madan B.…; Harish Chander…
- **Appellants:** Dychem Internation…
- **Respondents:** Abhinandan Dyeing…
- **Advocates:** Akash S…; Shreeradha…

## Timeline

- **2020-03-12 — Settlement Ag…**: The parties entered into a Settlement Agreement before the formation of the Committee of…
- **2020-11-02 — Hearing…**: Hearing on the application for…

## 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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