# In the matter of Kimaya Industries Pvt. Ltd. IA-226(AHM)2021 with CP(IB) 13-9-NCLT-AHM-2020

> NCLT judgment dated 2021-03-23. Citation: TCN-2021-NCLT-02612. The case involves an application (IA No. 226 of 2021) filed by the Interim Resolution…

- **Court:** NCLT
- **Order date:** 23 Mar 2021
- **Citation:** TCN-2021-NCLT-02612
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kimaya-industries-pvt-ltd-ia-226ahm2021-with-cpib-13-9-nclt-ahm-2020-50fef961

## Summary

### Background

The case involves an application (IA No. 226 of 2021) filed by the Interim Resolution Professional (IRP) for the withdrawal of the Corporate Insolvency Resolution Process (CIRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC). The parties involved appear to have settled the dispute by sanctioning a One-Time Settlement (OTS). The Committee of Creditors (CoC) has not yet been formed.

## Facts

Indiabulls Consumer Finance Ltd initiated a Corporate Insolvency Resolution Process (CIRP) against Kimaya Industries Pvt Ltd. The Interim Resolution Professional (IRP) filed IA No. 226 of 2021 seeking withdrawal of the CIRP under Section 12A of the Insolvency and Bankruptcy Code, 2016. The IRP and the counsel for the Corporate Debtor appeared before the court. The court noted that the parties had settled the dispute by sanctioning a One-Time Settlement (OTS). No one objected to the withdrawal application, and the Committee of Creditors (CoC) had not yet been formed. The application was filed under Section 12A of the IBC, indicating a settlement between the parties after the initiation of CIRP but before the constitution of the CoC. The court allowed the application,

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP under Section 12A of the Insolvency and Bankruptcy …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of

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**Reasoning:** The court reasoned that since the parties had settled the dispute through an OTS and no

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**Interpretation:** Section 12A is interpreted to provide flexibility in allowing withdrawal of

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

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Respondents:** Kimaya Industries…
- **Advocates:** Mayur Jug…; Biju A…

## Timeline

- **2021-03-23 — Order Da…**: The order was issued on this date, allowing the withdrawal of the CIRP and releasing the…

## 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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