# In the matter of Megacity Apartments Pvt. Ltd. CA(IB) No. 1166-KB-2019 in CP(IB) 459-KB-2018

> NCLT judgment dated 2019-09-17. Citation: TCN-2019-NCLT-01438. The case involves an application (CA(IB) No. 1166/KB/2019) filed in CP(IB) No. 459/KB/2018,…

- **Court:** NCLT
- **Order date:** 17 Sept 2019
- **Citation:** TCN-2019-NCLT-01438
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/megacity-apartments-pvt-ltd-caib-no-1166-kb-2019-in-cpib-459-kb-2018-16ec53df

## Summary

### Background

The case involves an application (CA(IB) No. 1166/KB/2019) filed in CP(IB) No. 459/KB/2018, concerning a settlement of debt between the Operational Creditor and the Corporate Debtor. The application was filed under Section 12A of the I&B Code, 2016, for recording the settlement. The Operational Creditor has received payment through bank drafts.

## Facts

An application CA(IB) No. 1166/KB/2019 was filed in CP(IB) No. 459/KB/2018. The application was filed under Section 12A of the I&B Code, 2016, to record the settlement of debt between the Operational Creditor and the Corporate Debtor. The Operational Creditor received payment through bank drafts, and the copy of the bank drafts was annexed with the application. The Interim Resolution Professional (IRP) confirmed receipt of resolution fees and costs, with no outstanding dues. The Tribunal was satisfied that the matter was settled out of court. The CP (IB) No. 459/KB/2018 was advanced from 01/10/2019.

## Issues and analysis

### Issue 1: Whether the application CA(IB) No. 1166/KB/2019 should be allowed, permitting the petitioner to …

**Ratio:** When a settlement is reached between the Operational Creditor and the Corporate Debtor,

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**Reasoning:** The Tribunal was satisfied that the matter was settled out of the Tribunal, and there was

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**Interpretation:** Section 12A of the I&B Code, 2016 allows for the withdrawal of an

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**Application:** In this case, the Operational Creditor received payment through bank drafts,

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Subrata S…
- **Respondents:** M/s. Megacity…

## Timeline

- **2018-01-01 — CP(IB) F…**: CP(IB) No. 459/KB/2018…
- **2019-01-01 — CA(IB) F…**: CA(IB) No. 1166/KB/2019 was filed under…

## 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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