# In the matter of Array Land Developers Pvt. Ltd.

> NCLT judgment dated 2024-02-16. Citation: TCN-2024-NCLT-02565. The application was filed seeking an order in terms of Section 12 A of IBC, 2016, permitting…

- **Court:** NCLT
- **Order date:** 16 Feb 2024
- **Citation:** TCN-2024-NCLT-02565
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/array-land-developers-pvt-ltd-58ef48e9

## Summary

### Background

The application was filed seeking an order in terms of Section 12 A of IBC, 2016, permitting withdrawal of the IBC application. The parties entered into a settlement agreement on 08.01.2024. A CoC meeting was held on 19.01.2024, and following the filing of Form FA and e-voting with a bank guarantee, the resolution was approved with 95.65% voting. The applicant stated that the final installment payable by 31.01.2024 has been paid.

## Facts

The application sought withdrawal of IBC proceedings under Section 12A of IBC, 2016. A settlement agreement was reached on 08.01.2024. A CoC meeting occurred on 19.01.2024. Form FA was filed, and e-voting with a bank guarantee resulted in 95.65% approval. The final installment was paid by 31.01.2024. The court allowed the withdrawal, dismissed the petition, directed the IRP to hand over management to the Board of Directors, and released the Corporate Debtor from IBC rigors. The original CIRP application was CP(IB)/197(CHE)/2022, and the application for withdrawal was IA/432(CHE)/2024. The order discharging the corporate debtor was dated 05.07.2023.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the IBC proceedings should be allowed based on the …

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

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**Reasoning:** The court reasoned that the settlement, the CoC's approval with a significant majority

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**Interpretation:** Section 12A is interpreted to facilitate settlements and resolutions outside

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**Application:** In this case, the settlement, the CoC's approval, and the payment of the final

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## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Respondents:** Array Land…
- **Advocates:** B. Dhan…

## Timeline

- **2024-01-08 — Settlement Ag…**: Parties entered into a…
- **2024-01-19 — CoC Meet…**: CoC meeting held based on…

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