# In the matter of AP Coated Drums & Barrels Pvt..Ltd. C.P. No.(IB) 1365(MB)-2018

> NCLT judgment dated 2019-04-02. Citation: TCN-2019-NCLT-04198. The case pertains to an application filed under Section 12A of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Apr 2019
- **Citation:** TCN-2019-NCLT-04198
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ap-coated-drums-barrels-pvtltd-cp-noib-1365mb-2018-086c71d6

## Summary

### Background

The case pertains to an application filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking withdrawal of Corporate Insolvency Resolution Process (CIRP) initiated against AP Coated Drums & Barrels Pvt Ltd. The CIRP was initiated under Section 9 of the IBC, and the petition was admitted on 16.10.2018. Subsequently, the original applicant, Haresh Dharmani, and the Corporate Debtor settled the matter mutually, executing a settlement deed on 22.2.2019.

## Facts

Haresh Dharmani, proprietor of Haresh Trading Company, initiated CIRP against AP Coated Drums & Barrels Pvt Ltd under Section 9 of IBC. The petition was admitted on 16.10.2018. Subsequently, Haresh Dharmani and AP Coated Drums & Barrels Pvt Ltd reached a settlement, executing a settlement deed on 22.2.2019. Haresh Dharmani authorized the filing of an application for withdrawal of the CIRP. The settlement deed and Form FA were placed before the CoC, which approved the withdrawal application with a 100% vote share. The Resolution Professional, Hemanshu Kapadia, was authorized to file the withdrawal application. The applicant stated that all CIRP costs and fees had been paid. The CoC also had discussions with Standard Chartered Bank and HDFC Bank Ltd, requesting

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP under Section 12A of IBC should be allowed given the …

**Ratio:** Section 12A of the IBC allows for the withdrawal of CIRP with the approval of 90% voting

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**Reasoning:** The Tribunal considered the settlement between the Operational Creditor and the Corporate

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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 Operational Creditor and the Corporate Debtor settled their

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Haresh Dh…
- **Respondents:** AP Coated Drums &…

## Timeline

- **2018-10-16 — Admission of…**: The petition filed under Section 9 of…
- **2019-02-22 — Settlement Deed…**: The original applicant and the Corporate Debtor settled the matter mutually and executed…

## 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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