# In the matter of Ado Additives Mfg Private Limited

> NCLT judgment dated 2025-02-28. Citation: TCN-2025-NCLT-00425. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 28 Feb 2025
- **Citation:** TCN-2025-NCLT-00425
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ado-additives-mfg-private-limited-e5a94564

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against Ado Additives MFG Private Limited. The CIRP was initiated following an application under Section 9 of the IBC. The Resolution Professional (RP) was appointed, and a Committee of Creditors (CoC) was formed. The Operational Creditor and the Corporate Debtor engaged in settlement talks, leading to a settlement agreement dated January 17, 2025. The CoC approved the settlement and withdrawal of the CIRP application with 91.34% voting share.

## Facts

The Corporate Debtor, Ado Additives MFG Private Limited, was admitted into CIRP following an application under Section 9 of the IBC. The Resolution Professional was appointed on July 20, 2024. A Committee of Creditors (CoC) was constituted, with Indian Bank holding 91.34% of the voting share and Mr. Aryan Kumar holding 8.66%. The Operational Creditor and the Corporate Debtor engaged in settlement talks and reached a settlement agreement dated January 17, 2025. The Corporate Debtor agreed to pay USD 168,000 to the Operational Creditor in installments. The first installment of USD 42,000 was to be paid by February 15, 2025. The CoC approved the settlement and the withdrawal of the CIRP application with 91.34% voting share. The Operational Creditor provided Form FA to the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of the CIRP application under Section …

**Ratio:** Section 12A of the IBC allows the Adjudicating Authority to permit the withdrawal of an

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**Reasoning:** The court reasoned that the CoC, with 91.34% voting share, had approved the settlement

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**Interpretation:** Section 12A is interpreted to provide a mechanism for withdrawing CIRP

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**Application:** In this case, the Corporate Debtor and the Operational Creditor reached a

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## Parties

- **Judges:** BIDISHA BA…; Madhu S…
- **Appellants:** KOREA TRADE…
- **Respondents:** ADO ADDITIVES MFG…

## Timeline

- **2024-06-05 — Order passed admitting Corporate Debtor into…**: The Tribunal passed an order…
- **2024-07-20 — Appointment of…**: The Resolution…

## 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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