# In the matter of Sathwik Projects Private Limited

> NCLT judgment dated 2023-12-06. Citation: TCN-2023-NCLT-00410. The application IA (IBC) 1885/2023 was filed in CP(IB) No. 139/7/HDB/2023 under Section 7 of…

- **Court:** NCLT
- **Order date:** 6 Dec 2023
- **Citation:** TCN-2023-NCLT-00410
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sathwik-projects-private-limited-2add967e

## Summary

### Background

The application IA (IBC) 1885/2023 was filed in CP(IB) No. 139/7/HDB/2023 under Section 7 of the IBC, 2016. The IRP filed the application seeking withdrawal of CIRP proceedings initiated against the Corporate Debtor. The basis for the withdrawal is that the parties have settled the matter after the Corporate Debtor's admission into CIRP, with the Corporate Debtor paying the agreed amount to the Financial Creditor. The CoC was not constituted, and Form-H has been filed.

## Facts

An application, IA (IBC) 1885/2023, was filed by the IRP seeking withdrawal of CIRP proceedings against M/s. Sathwik Projects Private Limited, the Corporate Debtor. The CIRP was initiated based on an order dated 2023-10-30. The reason for seeking withdrawal is that the Corporate Debtor and the Financial Creditor, Mr. Ram Govind Reddy Narapa Reddy, have settled the matter. The Corporate Debtor has paid the agreed amount to the Financial Creditor. The CoC was not constituted. Form-H, related to the settlement, has been filed. The court perused the settlement record dated 2023-11-10.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP proceedings should be allowed based on the …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code (IBC) allows for the withdrawal of CIRP

…

**Reasoning:** The court considered that the Corporate Debtor and the Financial Creditor had reached a

…

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

…

**Application:** In this case, the court applied the principle of Section 12A by considering the

…

## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Respondents:** M/s. Sathwik…

## Timeline

- **2023-10-30 — Order for CIRP…**: Tribunal orders initiation of CIRP…
- **2023-11-10 — Settlemen…**: Settlement agreement reached between 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sathwik-projects-private-limited-2add967e