# In the matter of Akhil Logistics Pvt. Ltd. MA-1410-2018 In CP(IB)-150-MB-2018

> NCLT judgment dated 2018-12-14. Citation: TCN-2018-NCLT-00080. The application was filed by the Resolution Professional (RP) Mr. SitanshMagia, dated…

- **Court:** NCLT
- **Order date:** 14 Dec 2018
- **Citation:** TCN-2018-NCLT-00080
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/akhil-logistics-pvt-ltd-ma-1410-2018-in-cpib-150-mb-2018-7b920a5d

## Summary

### Background

The application was filed by the Resolution Professional (RP) Mr. SitanshMagia, dated 26.11.2018, seeking an order under Section 12A of the IB Code. The application includes the settlement plan, specifically para 4, which outlines the payment terms agreed upon by the parties. The First Party agreed to pay INR 42,37,715.95 to the Second Party on behalf of Akhil, through post-dated cheques as per the payment plan. The plan includes two payments: INR 15,00,000.00 within 3 days of quashing the order dated 25.10.2018, and INR 5,00,000.00 within 30 days from the same date.

## Facts

The Resolution Professional (RP), Mr. SitanshMagia, filed an application on 2018-11-26 seeking an order under Section 12A of the IB Code. The application included a settlement plan where the First Party agreed to pay INR 42,37,715.95 to the Second Party on behalf of Akhil, with two payments: INR 15,00,000.00 within 3 days of quashing the order dated 2018-10-25, and INR 5,00,000.00 within 30 days from the same date. A resolution dated 2018-11-23 showed 100% voting in favor of the withdrawal by the sole member of the CoC. The RP confirmed that CIRP costs were paid, and the Promoter/Director's counsel assured payment of any remaining balance if ratified. The NCLT quashed the order dated 2018-10-25.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the petition under Section 12A of the IB Code should be …

**Ratio:** Section 12A of the IB Code allows for the withdrawal of an application admitted under

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**Reasoning:** The court considered the settlement plan, the resolution indicating 100% approval for

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**Interpretation:** Section 12A provides a mechanism for parties to settle their disputes and

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**Application:** In this case, the settlement plan, the CoC's approval, and the assurances

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Faces Cosmetics…
- **Respondents:** Akhil Logistics…

## Timeline

- **2018-10-25 — Order Da…**: Order passed by the Learned NCLT/quashing…
- **2018-11-23 — Resolutio…**: Resolution dated 23.11.2018 placed on record,…

## 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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