# 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-01432. The case involves an application being CA(IB) No. 1166/KB/2019 in CP(IB) No. 459/KB/2018, filed…

- **Court:** NCLT
- **Order date:** 17 Sept 2019
- **Citation:** TCN-2019-NCLT-01432
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/megacity-apartments-pvt-ltd-caib-no-1166-kb-2019-in-cpib-459-kb-2018-2ebb01bc

## Summary

### Background

The case involves an application being CA(IB) No. 1166/KB/2019 in CP(IB) No. 459/KB/2018, filed under Section 12A of the I & B Code, 2016. The application pertains to recording the settlement of debt between the Operational Creditor and the Corporate Debtor. The Operational Creditor has received payment through Bank Drafts, and the Interim Resolution Professional (IRP) has received the resolution fee and cost.

## Facts

An application CA(IB) No. 1166/KB/2019 was filed in CP(IB) No. 459/KB/2018 under Section 12A of the I&B Code, 2016. This application was related to the settlement of debt between the Operational Creditor and the Corporate Debtor. The Operational Creditor received payment via bank drafts, and the Interim Resolution Professional (IRP) confirmed receipt of the resolution fee and costs. The Tribunal noted that the matter was settled outside of the Tribunal, and no amounts were outstanding to the IRP. The petitioner was then permitted to withdraw the CP.

## Issues and analysis

### Issue 1: Whether the application CA(IB) No. 1166/KB/2019 in CP(IB) No. 459/KB/2018 should be allowed, …

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

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**Reasoning:** The court reasoned that since the matter was settled out of the Tribunal and no amount

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

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

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## Parties

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

## Timeline

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