# In the matter of Milano Paper Pvt. Ltd. IA-67(AHM)2021 in CP(IB) 544-NCLT-2019

> NCLT judgment dated 2021-02-03. Citation: TCN-2021-NCLT-03139. The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 3 Feb 2021
- **Citation:** TCN-2021-NCLT-03139
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/milano-paper-pvt-ltd-ia-67ahm2021-in-cpib-544-nclt-2019-05ac1d12

## Summary

### Background

The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code (IBC) to withdraw an insolvency application numbered CP(IB) 544 of 2019. The application was admitted on 31.12.2020. The parties have settled the matter among themselves, leading to the withdrawal request.

## Facts

The key facts are as follows: An insolvency application (CP(IB) 544 of 2019) was filed and admitted on 31.12.2020. The parties involved reached a settlement after the admission. An application was filed under Section 12A of IBC to withdraw the insolvency application. The IRP, Nimai Gautam Shah, submitted an affidavit confirming the settlement and the execution of Form-FA. The operational creditor, Dhara Plastics, through its proprietor Mr. Jyesh Dasani, supported the withdrawal. The relevance of these facts lies in demonstrating the settlement between the parties, leading to the withdrawal of the insolvency proceedings and the subsequent release of the corporate debtor from the IBC process.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the insolvency proceedings under Section 12A of the IBC …

**Ratio:** Section 12A of the IBC allows for the withdrawal of an application admitted under Section

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**Reasoning:** The court reasoned that since the parties had settled the matter among themselves after

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**Interpretation:** Section 12A is interpreted to facilitate settlements between parties even after

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**Application:** In this case, the parties settled after the admission of the application. The

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Respondents:** Milano Papers Pvt…
- **Advocates:** Dhwani La…

## Timeline

- **2019-01-01 — Insolvency Application…**: CP(IB) 544/NCLT/2019…
- **2020-12-31 — Application A…**: CP(IB) 544 of 2019…

## 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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