# In the matter of S K Dyeing and Finishing Mills Pvt. Ltd. CA-1259-C-V-ND-2020 in IB-2166-ND-2020

> NCLT judgment dated 2020-02-20. Citation: TCN-2020-NCLT-01878. The case involves an application (CA-1259/2020) filed by the Interim Resolution Professional…

- **Court:** NCLT
- **Order date:** 20 Feb 2020
- **Citation:** TCN-2020-NCLT-01878
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/s-k-dyeing-and-finishing-mills-pvt-ltd-ca-1259-c-v-nd-2020-in-ib-2166-nd-2020-10877e28

## Summary

### Background

The case involves an application (CA-1259/2020) filed by the Interim Resolution Professional (IRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 30A of the Insolvency and Bankruptcy Board of India (IBBI) Regulations concerning the Corporate Insolvency Resolution Process (CIRP) for Corporate Persons. The IRP sought to withdraw the application. Previously, an application was jointly filed by the Operational Creditor and Corporate Debtor but was rejected because it was not filed through the IRP.

## Facts

M/s Shanti Chemtrade Pvt Ltd filed an application under Section 9 of the IBC as an operational creditor against M/s S K Dyeing and Finishing Mills Pvt Ltd. An earlier application was jointly filed by the Operational Creditor and Corporate Debtor but was rejected because it was not filed through the IRP. The IRP then filed CA-1259/2020 under Section 12A of the IBC seeking withdrawal of the application. No CoC was constituted, and a settlement was reached between the parties. The IRP confirmed that no claims were received following the public announcement and that all fees and costs had been paid. The IRP enclosed Form-FA with the application, indicating a settlement. The initial order was dated 16.01.2020.

## Issues and analysis

### Issue 1: Whether the IRP's application for withdrawal of the CIRP application should be approved given the …

**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, no CoC had been

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**Interpretation:** Section 12A provides a mechanism for settling disputes outside the formal CIRP

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**Application:** The court applied Section 12A by considering the settlement between the

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** M/s Shanti…
- **Respondents:** M/s S K Dyeing…

## Timeline

- **2020-01-16 — Initial Ord…**: An initial order was passed,…
- **2020-02-20 — Order Del…**: The final order was delivered,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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