# In the matter of Karington Club and Resort Ltd. IA 430-2019 in C.P. (I.B) No. 224-9-NCLT-AHM-2019

> NCLT judgment dated 2019-10-16. Citation: TCN-2019-NCLT-00970. The case involves an application filed by Harmony Multimedia Private Limited, the Operational…

- **Court:** NCLT
- **Order date:** 16 Oct 2019
- **Citation:** TCN-2019-NCLT-00970
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/karington-club-and-resort-ltd-ia-430-2019-in-cp-ib-no-224-9-nclt-ahm-2019-5dfad13d

## Summary

### Background

The case involves an application filed by Harmony Multimedia Private Limited, the Operational Creditor, under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of the IB Petition (CP (IB) No.224 of 2019) and recalling the Corporate Insolvency Resolution Process (CIRP) against Karington Club and Resort Limited, the Corporate Debtor. The CIRP was initiated vide the Court's order dated 10.07.2019, which admitted the IB petition and declared a moratorium.

## Facts

Harmony Multimedia Private Limited, the Operational Creditor, filed an application under Section 12A of the Insolvency and Bankruptcy Code, 2016, to withdraw the IB Petition (CP (IB) No.224 of 2019) against Karington Club and Resort Limited, the Corporate Debtor. The Corporate Debtor proposed to settle the debt of Rs. 19,94,800/- by issuing post-dated cheques. The Corporate Debtor acknowledged the debt and undertook to honor the cheques. The amount claimed by the Applicant from the Corporate Debtor is Rs.20,30,843.75, including principal and interest. The settlement was reached before the constitution of the Committee of Creditors (CoC). The Interim Resolution Professional (IRP) had no objection to allowing the application. The application for settlement was filed on

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can permit the withdrawal of an IB Petition at the …

**Ratio:** The Adjudicating Authority has the power and jurisdiction to permit the applicant to

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**Reasoning:** The court relied on the Supreme Court's judgment in Swiss Ribbons vs. Union of India,

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**Interpretation:** The interpretation of Section 12A of the Insolvency and Bankruptcy Code, 2016,

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**Application:** In this case, the settlement was reached between Harmony Multimedia Private

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** Harmony Multimedia…
- **Respondents:** Karington Club &…; Karington Club…; +2 more

## Timeline

- **2019-07-10 — Admission of IB…**: The Court admitted the IB…
- **2019-07-19 — Application for…**: The application for settlement was filed…

## 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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