# In the matter of Akshar Fabrics Pvt. Ltd.

> NCLT judgment dated 2023-10-06. Citation: TCN-2023-NCLT-01376. 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-01376
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/akshar-fabrics-pvt-ltd-fef24084

## 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 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 commenced on 2023-09-11. Subsequently, Shree Hari Coal Corporation and Akshar Fabrics Pvt Ltd reached a settlement. 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. Form FA, evidencing the settlement, was presented to the court.

## Issues and analysis

### Issue 1: Whether the Tribunal can allow the withdrawal of the Company Petition No. 331 of 2022 under Section …

**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 had been reached between the applicant and the

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**Interpretation:** Section 12A is interpreted to provide flexibility in cases where a settlement

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**Application:** In this case, the court applied the principle of Section 12A by considering the

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## Parties

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

## Timeline

- **2023-09-11 — CIRP Commen…**: Corporate Insolvency Resolution Process…
- **2023-10-06 — Order Del…**: Order delivered allowing the withdrawal of the application and releasing the corporate…

## 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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