# In the matter of Indounique Flame Limited

> NCLT judgment dated 2024-08-02. Citation: TCN-2024-NCLT-00891. The case involves an application filed under Section 12A of the IBC, 2016, by the Resolution…

- **Court:** NCLT
- **Order date:** 2 Aug 2024
- **Citation:** TCN-2024-NCLT-00891
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indounique-flame-limited-fc738710

## Summary

### Background

The case involves an application filed under Section 12A of the IBC, 2016, by the Resolution Professional, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, as recommended by the Committee of Creditors (CoC).

## Facts

The present application, IA-3804/2024 , was filed under Section 12A of the IBC, 2016, by the Resolution Professional (RP) based on the recommendation of the Committee of Creditors (CoC). The application sought the withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor, Indounique Flame Ltd. This move followed an amicable settlement reached between the parties involved in the dispute. The CoC's recommendation for withdrawal was a crucial step in this process. On January 11, 2024, the Tribunal had admitted the petition, C.P. (IB)/635(MB)2023, under Section 7 of the IBC, thereby commencing the CIRP against the Corporate Debtor. Following the admission order, an Interim Resolution Professional (IRP) was appointed, and a

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor should be …

**Ratio:** The CIRP can be withdrawn if the parties have amicably settled the claim and the

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**Reasoning:** The parties amicably settled the claim, and the Committee of Creditors (CoC) unanimously

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**Interpretation:** The Tribunal interpreted Section 12A of the IBC to allow for the withdrawal of

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**Application:** Given the amicable settlement and the 100% approval from the CoC, the Tribunal

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** The South Indian…
- **Respondents:** Indounique Flame…
- **Advocates:** Viraj R…; Ashish…; +3 more

## Timeline

- **January 11, 2024 — Petition Admitted and…**: The Tribunal admitted the petition (C.P. (IB)/635(MB)2023) under Section 7 of the IBC,…
- **February 22, 2024 — First CoC M…**: The Committee of Creditors (CoC) was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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