# In the matter of Samar Lifestyle Private Limited

> NCLT judgment dated 2023-08-03. Citation: TCN-2023-NCLT-02182. The case involves an application for withdrawal of a Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 3 Aug 2023
- **Citation:** TCN-2023-NCLT-02182
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/samar-lifestyle-private-limited-35d9d110

## Summary

### Background

The case involves an application for withdrawal of a Corporate Insolvency Resolution Process (CIRP) initiated by Excelsior Leathers Private Limited against Samar Lifestyle Private Limited. The CIRP was initiated under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Resolution Professional (RP) filed an application under Section 12A of the IBC, seeking to withdraw the CIRP based on a settlement reached between the parties. The Committee of Creditors (CoC) had approved the withdrawal in its meeting held on 04.11.2022 with a 100% voting share. A settlement was proposed by the suspended director of the Corporate Debtor to the Operational Creditor for Rs. 54.17 lakhs. However, the Operational Creditor initially denied submitting Form-FA, leading to the

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## Facts

Excelsior Leathers Private Limited initiated a CIRP against Samar Lifestyle Private Limited under Section 9 of the IBC. The CIRP was admitted on 07.06.2022. Subsequently, discussions were held in the 3rd meeting of the CoC on 04.11.2022, where an agenda for withdrawal of the petition was tabled and approved with 100% voting share. The suspended director of Samar Lifestyle Private Limited proposed a settlement of Rs. 54.17 lakhs to Excelsior Leathers Private Limited on 15.11.2022. Excelsior Leathers Private Limited initially refused to submit Form-FA, leading Samar Lifestyle Private Limited to file I.A No. 153 of 2023. During the pendency of the application, Samar Lifestyle Private Limited and its sister concerns settled the dispute with Excelsior Leathers Private

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## Issues and analysis

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

**Ratio:** Section 12A of the IBC allows for the withdrawal of a CIRP with the approval of 90% of

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**Reasoning:** The court reasoned that the CoC had approved the withdrawal with a 100% voting share. The

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**Interpretation:** Section 12A of the IBC provides a mechanism for parties to settle their

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**Application:** In this case, the CoC approved the withdrawal, the parties settled their

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## Parties

- **Judges:** (Retd.) T.…; Shri. Prabhat…
- **Appellants:** Excelsior…
- **Respondents:** Samar Lifestyle…; M/s. Samar…
- **Advocates:** Aditya…

## Timeline

- **2021-01-01 — Initiation…**: C.P (IB) No.18/BB/2021 filed by Excelsior Leathers Private Limited against Samar…
- **2022-06-07 — Admission of Company…**: Company Petition was admitted by this Adjudicating Authority vide Order dated 07.06.2022…

## 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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