# 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-00961. The case involves an application filed by Harmony Multimedia Private Limited, the Operational…

- **Court:** NCLT
- **Order date:** 16 Oct 2019
- **Citation:** TCN-2019-NCLT-00961
- **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-2019-5f79a4e8

## 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 by the court's order dated 10.07.2019, which admitted the IB petition and declared a moratorium. The Corporate Debtor approached the applicant and proposed a settlement of Rs. 19,94,800/- through post-dated cheques.

## Facts

Harmony Multimedia Private Limited, an Operational Creditor, filed an IB Petition (CP (IB) No.224 of 2019) against Karington Club and Resort Limited, a Corporate Debtor. The petition was admitted on 2019-07-10, and a moratorium was declared. Subsequently, the Corporate Debtor approached Harmony Multimedia Private Limited and proposed a settlement of Rs. 19,94,800/- to be paid through post-dated cheques. The Operational Creditor agreed to the settlement and filed IA No. 430 of 2019 seeking withdrawal of the IB Petition. The settlement was reached before the constitution of the Committee of Creditors (CoC). The Corporate Debtor acknowledged the debt and undertook to honor the cheques. The IRP had no objection to the withdrawal. The amount claimed by the applicant from

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of an IB Petition after its admission …

**Ratio:** The ratio is based on the Supreme Court's judgment in Swiss Ribbons vs. Union of India

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**Reasoning:** The court reasoned that since the settlement was reached before the constitution of the

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**Interpretation:** This interprets Section 12A of the Insolvency and Bankruptcy Code, 2016, in

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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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 NCLT admitted the IB Petition (CP (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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