# In the matter of Sand Dune Construction Pvt. Ltd.

> NCLT judgment dated 2024-07-29. Citation: TCN-2024-NCLT-00927. The case involves an application under Section 12A of the IBC, 2016 read with Regulation 30A of…

- **Court:** NCLT
- **Order date:** 29 Jul 2024
- **Citation:** TCN-2024-NCLT-00927
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sand-dune-construction-pvt-ltd-d197bbff

## Summary

### Background

The case involves an application under Section 12A of the IBC, 2016 read with Regulation 30A of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, seeking permission for withdrawal of a matter admitted under Section 7 of the IBC, 2016. The Financial Creditor informed the Applicant via email dated 23.07.2024 that a settlement arrangement had been initiated between the Financial Creditor (FC) and the Corporate Debtor (CD). The settlement proposal took its final shape vide a Memorandum of Understanding dated 22.07.2023.

## Facts

Gateway Welfare Society, the Financial Creditor/Applicant, filed an application under Section 7 of the IBC, 2016 against Sand Dune Construction Pvt. Ltd., the Corporate Debtor/Respondent. The matter was admitted, and subsequently, an application was filed under Section 12A of the IBC, 2016, seeking permission to withdraw the matter based on a settlement agreement between the parties. The settlement arrangement was initiated, and a Memorandum of Understanding was signed on 22.07.2023. The Financial Creditor informed the Applicant of the settlement via email dated 23.07.2024. The application for withdrawal was supported by an email and Form-FA.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the matter under Section 12A of the IBC, 2016 should be …

**Ratio:** Section 12A of the IBC, 2016, read with Regulation 30A of the IBBI (Insolvency Resolution

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**Reasoning:** The court reasoned that since the parties had reached a settlement agreement, as

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**Interpretation:** Section 12A provides a mechanism for parties to resolve their disputes outside

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**Application:** In this case, the existence of a settlement agreement between Gateway Welfare

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Gateway Welfare…
- **Respondents:** Sand Dune…

## Timeline

- **2016-01-01 — Enactment of I…**: The Insolvency and…
- **2023-07-22 — Memorandum of…**: The settlement proposal took its final…

## 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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