# In the matter of Limeswood Developers Pvt. Ltd.

> NCLT judgment dated 2023-09-06. Citation: TCN-2023-NCLT-01758. The application IA No. 1892/2023 was filed under Section 12A of the Code based on a Settlement…

- **Court:** NCLT
- **Order date:** 6 Sept 2023
- **Citation:** TCN-2023-NCLT-01758
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/limeswood-developers-pvt-ltd-84569622

## Summary

### Background

The application IA No. 1892/2023 was filed under Section 12A of the Code based on a Settlement Agreement dated 05.08.2023 between the financial creditor and the respondent-corporate debtor. The financial creditor is the sole member of the Committee of Creditors (COC), and a resolution to that effect was placed on record in a COC meeting held on 05.08.2023.

## Facts

NPT Packaging Ltd., the financial creditor, initiated a Corporate Insolvency Resolution Process (CIRP) against Limeswood Developers Pvt. Ltd., the corporate debtor. Subsequently, a settlement agreement was reached between the parties on 05.08.2023. The financial creditor, being the sole member of the Committee of Creditors (COC), approved the withdrawal of the CIRP. An application, IA No. 1892/2023, was filed under Section 12A of the Insolvency and Bankruptcy Code (IBC) to withdraw the CIRP based on this settlement. The court considered the agreement and the COC's approval, leading to the withdrawal of the CIRP, discharge of the corporate debtor, and lifting of the moratorium.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC, based on the …

**Ratio:** Section 12A of the IBC allows for the withdrawal of CIRP with the approval of 90% voting

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**Reasoning:** The court considered the settlement agreement between the financial creditor and the

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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 financial creditor, being the sole member of the COC,

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## Parties

- **Judges:** UMESH KUMAR…; Harnam Singh…
- **Appellants:** NPT Packagi…
- **Respondents:** Limeswood…
- **Advocates:** Pulkit…

## Timeline

- **2023-08-05 — Settlement Ag…**: Settlement Agreement dated 05.08.2023 between financial creditor and respondent-corporate…
- **2023-08-05 — COC Meet…**: COC meeting held on 05.08.2023 where…

## 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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