# In the matter of Devgan Solvex Pvt. Ltd. IA No.184-2023 in CP(IB) No.175-Chd-Hry-2019

> NCLT judgment dated 2023-01-23. Citation: TCN-2023-NCLT-04939. The application was filed under Section 12A of the Insolvency and Bankruptcy Code (IBC) read…

- **Court:** NCLT
- **Order date:** 23 Jan 2023
- **Citation:** TCN-2023-NCLT-04939
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/devgan-solvex-pvt-ltd-ia-no184-2023-in-cpib-no175-chd-hry-2019-aa6810c9

## Summary

### Background

The application was filed under Section 12A of the Insolvency and Bankruptcy Code (IBC) read with Regulation 30A of the Insolvency and Bankruptcy Board of India Regulations, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) petition. The CIRP was already admitted vide order dated 2022-12-22. The applicant, Union Bank of India, had initiated action against the Corporate Debtor, Devgan Solvex Pvt. Ltd., under other statutory laws, including the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

## Facts

Union Bank of India, the financial creditor, filed a petition under the IBC against Devgan Solvex Pvt. Ltd., the corporate debtor. The petition was admitted, and CIRP was initiated. Subsequently, Union Bank of India filed an application under Section 12A of the IBC to withdraw the petition, stating that the matter had been settled and that they had initiated actions against the corporate debtor under other statutory laws. The NCLT considered the application and allowed the withdrawal, dismissing the CIRP and restoring the board of directors to their original positions. The key fact is the settlement between the parties leading to the withdrawal application.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC should be allowed …

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

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**Reasoning:** The court considered the applicant's assertion that the matter had been settled and that

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**Interpretation:** Section 12A provides a mechanism for parties to settle their disputes and

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**Application:** In this case, the applicant, Union Bank of India, sought to withdraw the CIRP

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## Parties

- **Judges:** SUBRATA KUM…; Harnam Singh…
- **Appellants:** Union Bank of…
- **Respondents:** Devgan Solvex…

## Timeline

- **2022-12-22 — CIRP Admissio…**: Order admitting the Corporate…
- **2023-01-23 — Order for Wit…**: Order allowing the withdrawal of the CIRP…

## 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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