# In the matter of Fairnate Chemicals Pvt. Ltd. IA-79(AHM)2021 in CP(IB)16-NCLT-2020

> NCLT judgment dated 2021-02-08. Citation: TCN-2021-NCLT-03104. The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 8 Feb 2021
- **Citation:** TCN-2021-NCLT-03104
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fairnate-chemicals-pvt-ltd-ia-79ahm2021-in-cpib16-nclt-2020-9a1bb379

## Summary

### Background

The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, and Regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, and Rule 11 of the NCLT Rules, 2016, seeking withdrawal of the main petition. The Corporate Insolvency Resolution Process (CIRP) was initiated against JV Enterprise, with CP(IB) 16 of 2020 admitted on 2021-01-15. Subsequently, both parties reached a settlement, leading to the current application for withdrawal.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against JV Enterprise. CP(IB) 16 of 2020 was admitted on 2021-01-15. Subsequently, both parties entered into a settlement. An application was filed under Section 12A of the IBC, 2016, seeking withdrawal of the main petition. The Operational Creditor filed Form No. NCLT 12, and a partner of the Operational Creditor, Mr. Vishal Dilipkumar Barot, filed Form-FA for withdrawal of the CP(IB) No. 16 of 2020. The IRP confirmed receipt of dues and remuneration. The relevance of the settlement is that it forms the basis for the withdrawal application under Section 12A of the IBC, allowing the corporate debtor to be freed from the CIRP.

## Issues and analysis

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

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

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**Reasoning:** The court considered the settlement between the parties and the provisions of Section 12A

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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 parties reached a settlement after the admission of CP(IB) 16

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Respondents:** JV Enter…

## Timeline

- **2020-01-01 — CP(IB) 16/NCLT/2020…**: Filing of CP(IB) 16 of…
- **2021-01-15 — Admission of CP(IB)…**: CP(IB) 16 of 2020 was admitted, initiating the Corporate Insolvency Resolution Process…

## 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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