# In the matter of Lotus Inn Pvt. Ltd. I.A. 1859-2020 in C.P. (IB) 3853(MB)-2018

> NCLT judgment dated 2022-05-11. Citation: TCN-2022-NCLT-02787. The case involves an application (I.A. 1859/2020) filed by the Resolution Professional (RP),…

- **Court:** NCLT
- **Order date:** 11 May 2022
- **Citation:** TCN-2022-NCLT-02787
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lotus-inn-pvt-ltd-ia-1859-2020-in-cp-ib-3853mb-2018-92fe5eb1

## Summary

### Background

The case involves an application (I.A. 1859/2020) filed by the Resolution Professional (RP), Mr. Anish Gupta, under section 12A of the Insolvency and Bankruptcy Code (IBC) for withdrawing the main Company Petition 1859/2020. This withdrawal is sought due to a settlement reached between the Operational Creditor and the Corporate Debtor. The Operational Creditor and Corporate Debtor amicably settled the matter by entering into consent terms dated 2022-03-16, involving a payment of Rs. 29,40,000/-.

## Facts

The Resolution Professional, Mr. Anish Gupta, filed an application (I.A. 1859/2020) under Section 12A of the IBC to withdraw the main Company Petition 1859/2020. This action was prompted by a settlement between Masters Management Consultants (India) Pvt Ltd, the Operational Creditor, and Lotus Inn Pvt Ltd, the Corporate Debtor. The settlement involved the Corporate Debtor paying Rs. 29,40,000/- to the Operational Creditor, as per consent terms dated 2022-03-16. The Operational Creditor also submitted Form FA dated 2020-09-23 for withdrawal of the CIRP process. No Committee of Creditors (COC) meeting had been constituted. The NCLT considered the submissions and material on record before allowing the withdrawal application and disposing of the main Company Petition. The

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Company Petition filed by the Resolution Professional …

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

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**Reasoning:** The court reasoned that the settlement between the Operational Creditor and the Corporate

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**Interpretation:** Section 12A provides a mechanism for resolving insolvency proceedings outside

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

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Respondents:** Lotus Inn P…

## Timeline

- **2020-03-03 — CIRP Admissio…**: CIRP admission order was passed…
- **2020-09-23 — Form FA Sub…**: Operational Creditor submitted Form…

## 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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