# In the matter of Zapp India Limited IA No. 48-JPR-2018 In IB-344-ND-2018

> NCLT judgment dated 2018-10-12. Citation: TCN-2018-NCLT-00589. The application was moved under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016,…

- **Court:** NCLT
- **Order date:** 12 Oct 2018
- **Citation:** TCN-2018-NCLT-00589
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/zapp-india-limited-ia-no-48-jpr-2018-in-ib-344-nd-2018-631d2e01

## Summary

### Background

The application was moved under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, as amended by the IBC Second Amendment Act, effective from June 6, 2018. The petition was admitted as filed by the Operational Creditor, M/s Maheshwar Textiles, on June 13, 2018. The Resolution Professional (RP) noted that the third Committee of Creditors (CoC) meeting held on September 17, 2018, considered the proposal for settlement and withdrawal. The minutes of the third CoC meeting held on September 17, 2018, indicated that the sole Financial Creditor, M/s IIFL Homes Finance Limited, held 100% voting rights in the CoC. The representative of the Operational Creditor, at whose instigation the petition was admitted, was present along with the directors and officers of the

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## Facts

M/s Maheshwar Textiles filed a petition as an Operational Creditor against Zapp India Limited. The petition was admitted. A settlement was reached between the parties on September 17, 2018. The third CoC meeting considered the settlement and withdrawal proposal. M/s IIFL Homes Finance Limited, the sole Financial Creditor, held 100% voting rights. An application in Form-FA was moved, and the CoC unanimously approved the settlement on October 4, 2018, meeting the 90% threshold under Section 12A of the IBC, 2016. The RP was authorized to move the application for withdrawal. The application was filed under Section 12A of IBC, 2016.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the petition under Section 12A of the IBC, 2016, should …

**Ratio:** Section 12A of the IBC, 2016, allows for the withdrawal of an application admitted under

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**Reasoning:** The Committee of Creditors unanimously approved the settlement between the Operational

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**Interpretation:** Section 12A of the IBC, 2016, provides a mechanism for settling disputes and

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**Application:** In this case, the CoC, holding 100% voting rights, approved the settlement.

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## Parties

- **Judges:** R. VARADH…
- **Appellants:** M/s Maheshwar…
- **Respondents:** Zapp India…

## Timeline

- **2018-06-06 — IBC Second Amendment…**: IBC Second Amendment…
- **2018-06-13 — Petition Filed by…**: M/S Mahashwar Textiles filed a…

## 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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