# In the matter of Sahara Hospitality Ltd. IA 1990-2022 In C.P. (IB)-2430(MB)2018

> NCLT judgment dated 2022-07-28. Citation: TCN-2022-NCLT-01546. The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 28 Jul 2022
- **Citation:** TCN-2022-NCLT-01546
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sahara-hospitality-ltd-ia-1990-2022-in-cp-ib-2430mb2018-4eaa6481

## Summary

### Background

The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Regulation 30A(1)(a) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The application was filed by Ms. Mamta Binani, the Interim Resolution Professional (IRP) of the Corporate Debtor, Sahara Hospitality Limited, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated by the Operational Creditor, Delta Electro Mechanical Private Limited.

## Facts

Delta Electro Mechanical Private Limited initiated a Corporate Insolvency Resolution Process (CIRP) against Sahara Hospitality Limited. Ms. Mamta Binani was appointed as the Interim Resolution Professional (IRP). Subsequently, Sahara Hospitality Limited and Delta Electro Mechanical Private Limited reached a settlement agreement where Sahara Hospitality Limited agreed to pay Rs. 8,00,00,000/- to Delta Electro Mechanical Private Limited in three installments to settle all outstanding dues. The Operational Creditor confirmed that the entire amount as indicated in the settlement agreement has been received. Based on this settlement, Ms. Binani, as the IRP, filed an application under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of the CIRP.

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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 Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of a

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**Reasoning:** The court reasoned that since the parties had reached a settlement and the Operational

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**Interpretation:** Section 12A is interpreted to facilitate settlements between the parties

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**Application:** In this case, the court applied Section 12A and Regulation 30A(1)(a) to the

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Mamta B…
- **Respondents:** Sahara Hospitality…; Delta Electro…

## Timeline

- **2018-01-01 — Initiation…**: Delta Electro Mechanical Private Limited filed C.P. (IB)/2430(MB)/2018 against Sahara…
- **2022-07-28 — Order Da…**: The National Company Law Tribunal (NCLT) allowed the withdrawal of the CIRP based on the…

## 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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