# In the matter of Ten Travels Pvt. Ltd. IA-2983-2020 in IB-2085-ND-2019

> NCLT judgment dated 2020-07-31. Citation: TCN-2020-NCLT-00921. The case involves an application (IA-2983/2020) filed under Section 12A of the Insolvency and…

- **Court:** NCLT
- **Order date:** 31 Jul 2020
- **Citation:** TCN-2020-NCLT-00921
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ten-travels-pvt-ltd-ia-2983-2020-in-ib-2085-nd-2019-4915f1e7

## Summary

### Background

The case involves an application (IA-2983/2020) filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons Regulations, 2016) to withdraw the main petition (IB-2085/ND/2019). The matter was initiated by Volkswagen Finance Pvt. Ltd. against Ten Travels Pvt. Ltd. under Section 7 of the IBC.

## Facts

Volkswagen Finance Pvt. Ltd. initiated insolvency proceedings against Ten Travels Pvt. Ltd. under Section 7 of the IBC. An Interim Resolution Professional (IRP) was appointed. Before the constitution of a Committee of Creditors (CoC), the parties reached a settlement. The IRP received Form FA from the financial creditor, confirming the settlement. The IRP also received his fees and expenses incurred during the CIRP. An application (IA-2983/2020) was filed under Section 12A of the IBC to withdraw the main petition (IB-2085/ND/2019). The financial creditor and the corporate debtor supported the withdrawal application. The key fact is the settlement between the parties before the CoC formation, leading to the withdrawal application.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the insolvency petition (IB-2085/ND/2019) should be …

**Ratio:** Section 12A of the IBC, read with Regulation 30A of the IBBI Regulations, allows for the

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**Reasoning:** The court reasoned that since the parties had settled the matter and no CoC had been

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**Interpretation:** Section 12A provides a mechanism for parties to settle disputes and withdraw

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**Application:** In this case, the parties settled before the CoC was formed. The IRP confirmed

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** Volkswagen…
- **Respondents:** Ten Travels Pvt.…

## Timeline

- **2020-03-19 — CIRP Initiati…**: Order was passed to initiate the Corporate…
- **2020-07-31 — Order for Wit…**: The NCLT approved the withdrawal of the insolvency petition and set aside the CIRP…

## 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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