# In the matter of Akshar Fabrics Pvt. Ltd.

> NCLT judgment dated 2023-10-06. Citation: TCN-2023-NCLT-01352. The case involves a petition filed under Section 12A of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 6 Oct 2023
- **Citation:** TCN-2023-NCLT-01352
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/akshar-fabrics-pvt-ltd-b39d4dc1

## Summary

### Background

The case involves a petition filed under Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Regulation 30A of the IBBI Regulations. Shree Hari Coal Corporation, the applicant, sought to withdraw its application against Akshar Fabrics Pvt Ltd, the corporate debtor, due to a settlement reached between the parties. The Corporate Insolvency Resolution Process (CIRP) had commenced against Akshar Fabrics Pvt Ltd based on an order dated 2023-09-11.

## Facts

Shree Hari Coal Corporation initiated Corporate Insolvency Resolution Process (CIRP) against Akshar Fabrics Pvt Ltd by filing Company Petition No. 331 of 2022. The CIRP was commenced vide order dated 2023-09-11. Subsequently, a settlement was reached between Shree Hari Coal Corporation and Akshar Fabrics Pvt Ltd. Shree Hari Coal Corporation then filed an application under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking to withdraw the CIRP application. The Interim Resolution Professional (IRP) confirmed that all fees and expenses had been received. The Committee of Creditors (CoC) had not been constituted at the time of the withdrawal application. The applicant submitted Form FA as evidence of the settlement.

## Issues and analysis

### Issue 1: Whether the Tribunal should allow the withdrawal of the Corporate Insolvency Resolution Process …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of an

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**Reasoning:** The court reasoned that since a settlement was reached between the applicant and the

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**Interpretation:** Section 12A provides a mechanism for withdrawal of CIRP applications, primarily

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**Application:** In this case, the court applied the principle that when a settlement is reached

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Shree Hari Coal…
- **Respondents:** Akshar Fabrics…

## Timeline

- **2023-09-11 — CIRP Comm…**: Corporate Insolvency Resolution Process was commenced against Corporate Debtor - Akshar…
- **2023-10-06 — Order Del…**: Order delivered allowing the…

## 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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