# In the matter of Nilkanth Organics Private Limited

> NCLT judgment dated 2024-09-02. Citation: TCN-2024-NCLT-00701. The case pertains to an application filed under Section 12A of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Sept 2024
- **Citation:** TCN-2024-NCLT-00701
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nilkanth-organics-private-limited-c338862f

## Summary

### Background

The case pertains to an application filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking withdrawal of the application. The stated debt has been settled in full by Demand Draft by the respondent. The Committee of Creditors (CoC) has not yet been constituted by the Interim Resolution Professional (IRP), and settlement has taken place between the parties.

## Facts

Valiant Organics Limited filed an application under Section 9 of the IBC against Nilkanth Organics Private Limited. The applicant subsequently filed IA/1352(AHM)2024 under Section 12A of the IBC, seeking withdrawal of the application because the debt had been settled in full by Demand Draft by the respondent, Nilkanth Organics Private Limited. The CoC had not yet been constituted, and a settlement had been reached between the parties. The court heard the applicant and respondent and allowed the application for withdrawal.

## Issues and analysis

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

**Ratio:** Section 12A of the IBC allows for withdrawal of an application admitted under Section 7,

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**Reasoning:** The court considered the fact that the debt had been settled in full by Demand Draft by

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**Interpretation:** The interpretation of Section 12A in this context suggests that when a

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**Application:** In this case, since the debt was settled before the CoC was formed, and the

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Valiant Organics…
- **Respondents:** Nilkanth Organics…

## Timeline

- **N/A — Application under…**: Valiant Organics Limited filed an application under Section 9 of the IBC against Nilkanth…
- **N/A — Application for…**: The applicant filed IA/1352(AHM)2024 under Section 12A of the IBC, seeking withdrawal of…

## 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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