# In the matter of Deccan Brakes Pvt Limited IA No. 850-2019 in CP (IB) No. 31-9-HDB-2019

> NCLT judgment dated 2019-10-16. Citation: TCN-2019-NCLT-00971. The case involves an application filed by the Interim Resolution Professional (IRP) under…

- **Court:** NCLT
- **Order date:** 16 Oct 2019
- **Citation:** TCN-2019-NCLT-00971
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deccan-brakes-pvt-limited-ia-no-850-2019-in-cp-ib-no-31-9-hdb-2019-1bd633f7

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 30A of the IBBI (CIRP) Regulations, 2016, seeking permission to withdraw a Company Petition (CP(IB)No.31/9/HDB/2019). The tribunal had previously admitted the petition filed under Section 9 of the IBC by the Operational Creditor and initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. A public announcement was made on September 15, 2019. Subsequently, a settlement was reached between the Corporate Debtor and the Operational Creditor.

## Facts

IVP Limited, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against Deccan Brakes Private Limited, the Corporate Debtor. The National Company Law Tribunal (NCLT) admitted the petition on September 11, 2019, initiating the Corporate Insolvency Resolution Process (CIRP) and imposing a moratorium. Subsequently, the Corporate Debtor and the Operational Creditor reached a settlement. The Interim Resolution Professional (IRP) then filed an application under Section 12A of the IBC, read with Regulation 30A of the IBBI (CIRP) Regulations, 2016, seeking to withdraw the petition. The IRP confirmed that all expenses incurred up to the filing of the withdrawal application, amounting to Rs. 1,90,000, had been paid. The

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## Issues and analysis

### Issue 1: Whether the tribunal can allow the withdrawal of a petition under Section 12A of the Insolvency and …

**Ratio:** Section 12A of the IBC, read with Regulation 30A of the IBBI (CIRP) Regulations, 2016,

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**Reasoning:** The tribunal reasoned that the parties had reached a settlement, and the Resolution

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**Interpretation:** Section 12A provides a mechanism for parties to settle disputes even after the

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**Application:** In this case, the Operational Creditor and the Corporate Debtor reached a

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…
- **Appellants:** IVP…
- **Respondents:** Deccan Brakes…; Deccan Brakers…

## Timeline

- **2019-08-26 — Hearing…**: Hearing held on August…
- **2019-09-11 — Admission of…**: Tribunal admitted the petition filed under Section 9 of the IBC by the Operational…

## 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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