# In the matter of Eco Rich Cosmetics India Private Limited MA 1059-2018 In TCP No. 892-IBC-NCLT-MB-MAH-2017

> NCLT judgment dated 2018-10-22. Citation: TCN-2018-NCLT-00527. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 22 Oct 2018
- **Citation:** TCN-2018-NCLT-00527
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/eco-rich-cosmetics-india-private-limited-ma-1059-2018-in-tcp-no-892-ibc-nclt-mb-72b831e7

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the Operational Creditor, 'Prime Products', against the Corporate Debtor, 'M/s. Eco Rich Cosmetics India Private Limited'. The petition was admitted on 26.04.2018, and Mr. Prabhakar Bhat was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). After the admission, the Operational Creditor and the Debtor engaged in discussions to resolve the disputes, leading to a settlement agreement.

## Facts

The Operational Creditor, Prime Products, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor, M/s. Eco Rich Cosmetics India Private Limited. The petition was admitted on 26.04.2018. Mr. Prabhakar Bhat was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). After the admission of the petition, the Operational Creditor and the Corporate Debtor entered into discussions and reached a settlement where the Debtor agreed to pay ₹13,00,000/- towards the full and final settlement of outstanding dues. The Operational Creditor accepted a pay order for this amount. The Operational Creditor also deposited a demand draft of ₹3,00,000/- towards the expenses incurred by

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of the application under Section 9 of …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016 allows the Adjudicating Authority

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**Reasoning:** The court reasoned that since the CoC, with a 100% voting share, approved the withdrawal

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**Interpretation:** Section 12A provides a mechanism for withdrawing insolvency applications when a

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

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Prabhakar…
- **Respondents:** M/s. Eco Rich…

## Timeline

- **2018-04-26 — Admission of…**: The Petition U/s. 9 of the Insolvency and Bankruptcy Code, 2016 filed by the Operational…
- **2018-07-25 — Public Annou…**: Public Announcement was done after…

## 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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