# In the matter of Kannelite Facility Management Services Pvt. Ltd. IA No. 58-2021 in CP No. (IB) 129-ALD-2019

> NCLT judgment dated 2021-01-27. Citation: TCN-2021-NCLT-03233. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 27 Jan 2021
- **Citation:** TCN-2021-NCLT-03233
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kannelite-facility-management-services-pvt-ltd-ia-no-58-2021-in-cp-no-ib-129-ald-69f946e9

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against Kannelite Facility Management Services Pvt. Ltd. The CIRP was initiated based on a petition under Section 9 of the IBC. The applicant sought withdrawal of the CIRP, and the court considered the matter through video conferencing.

## Facts

A CIRP was initiated against Kannelite Facility Management Services Pvt. Ltd. based on a petition under Section 9 of the IBC. Subsequently, a settlement agreement was reached between the operational creditor and the erstwhile management of the corporate debtor. A demand draft of Rs. 5,04,265 dated 2021-01-19 was handed over to Respondent No. 1 as full and final payment. The applicant then filed an application under Section 12A of the IBC for withdrawal of the CIRP. The Committee of Creditors (COC) had not been constituted till the date of the hearing. The court considered the settlement and the absence of a COC in allowing the withdrawal application.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP should be allowed, considering the settlement …

**Ratio:** The legal principle applied is that if a settlement is reached between the operational

…

**Reasoning:** The court reasoned that since a settlement had been reached between the parties and the

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**Interpretation:** Section 12A of the IBC allows for the withdrawal of a CIRP application with the

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**Application:** In this case, the court applied the principle by considering the settlement

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** SH. NIKSHUBHA…
- **Respondents:** Kannelite…; SH. KRISHNA DEV…

## Timeline

- **2021-01-06 — Order Da…**: Petition u/s 9 of IBC was admitted initiating for CIRP against Kannelite Facility…
- **2021-01-19 — Demand Draft Ha…**: Demand draft amounting to Rs.5,04,265 was…

## 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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