# In the matter of NEL Holdings South Ltd. I.A. No. 111-2022 in C.P.(IB) No. 18-BB-2018

> NCLT judgment dated 2022-03-29. Citation: TCN-2022-NCLT-03497. The case involves an application (I.A.No.111/2022) filed in C.P.(IB)No.18/BB/2018 concerning…

- **Court:** NCLT
- **Order date:** 29 Mar 2022
- **Citation:** TCN-2022-NCLT-03497
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nel-holdings-south-ltd-ia-no-111-2022-in-cpib-no-18-bb-2018-99f4f724

## Summary

### Background

The case involves an application (I.A.No.111/2022) filed in C.P.(IB)No.18/BB/2018 concerning M/s. Sree Vinayaka Buildwell Projects Pvt. Ltd. (Petitioner) against M/s. Nitesh Estate Ltd. (Respondent/Corporate Debtor, presently known as NEL Holdings South Ltd). The application was filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 30A of the IBBI (Insolvency Resolution Process of Corporate Person) Regulations, 2016, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP). The Corporate Debtor was admitted into CIRP, but the matter was settled between the Petitioner and the Corporate Debtor shortly thereafter.

## Facts

M/s. Sree Vinayaka Buildwell Projects Pvt. Ltd. filed a petition against M/s. Nitesh Estate Ltd. (now NEL Holdings South Ltd.) under Section 9 of the I&B Code, 2016. The petition was admitted, initiating the Corporate Insolvency Resolution Process (CIRP). However, after the admission of the C.P., the Petitioner and the Corporate Debtor reached a settlement. The settlement was formalized in a Memorandum of Settlement dated 23.03.2022. Consequently, the IRP (Insolvency Resolution Professional) filed an application (I.A.No.111/2022) under Section 12A of the IBC, 2016, read with Regulation 30A of the IBBI Regulations, seeking withdrawal of the C.P. The CIRP process had not yet commenced, and no costs were incurred. The Adjudicating Authority considered the settlement

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

**Ratio:** Section 12A of the IBC, read with Regulation 30A of the IBBI Regulations, allows for the

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**Reasoning:** The Adjudicating Authority considered the submission of the Respondent's counsel that the

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP when a settlement is

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**Application:** In this case, the settlement between the Petitioner and the Corporate Debtor,

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## Parties

- **Judges:** Ajay Kumar…; Manoj Kumar…
- **Appellants:** M/s. Sree…
- **Respondents:** M/s. Nitesh…

## Timeline

- **2018-01-01 — C.P.(IB)No.18…**: The case was registered…
- **2022-03-23 — Order for Ad…**: The Adjudicating…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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