# In the matter of Powerage Towers Ltd. IA-95(MP)2022 in TP 75 of 2019

> NCLT judgment dated 2022-06-10. Citation: TCN-2022-NCLT-02283. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 10 Jun 2022
- **Citation:** TCN-2022-NCLT-02283
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/powerage-towers-ltd-ia-95mp2022-in-tp-75-of-2019-59d305ca

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The application, IA/95(MP)2022, was initiated by Omkara Assets Reconstruction Pvt Ltd against Powerage Towers Ltd. The Interim Resolution Professional (IRP) filed the application under Section 12A of the IBC, read with Regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulation, 2016.

## Facts

Omkara Assets Reconstruction Pvt Ltd initiated an application (IA/95(MP)2022) under Section 7 of the IBC against Powerage Towers Ltd. The IRP filed the application under Section 12A of the IBC, read with Regulation 30A of the IBBI Regulations. After the Corporate Debtor was admitted into CIRP, a settlement was reached between the Original Financial Creditor and the Original Corporate Debtor. Consequently, the CoC was not formed. The parties' settlement led to the Corporate Debtor's release from the CIRP.

## Issues and analysis

### Issue 1: Whether the settlement between the Original Financial Creditor and the Original Corporate Debtor …

**Ratio:** The legal principle applied is that if a settlement is reached between the parties after

…

**Reasoning:** The court reasoned that since the parties had entered into a settlement after the

…

**Interpretation:** This interpretation acknowledges the flexibility provided by Section 12A of the

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**Application:** In this specific case, the settlement between the Original Financial Creditor

…

## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Omkara Assets…
- **Respondents:** Powerage Towers…

## Timeline

- **N/A — Application…**: IA/95(MP)2022 filed…
- **N/A — Settleme…**: Settlement reached between Original Financial Creditor and Original Corporate Debtor…

## 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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