# In the matter of Sikkim Hydro Power Ventures Ltd. IA-1584-ND-2022 in IB-1635-ND-2018

> NCLT judgment dated 2022-06-03. Citation: TCN-2022-NCLT-02419. The case involves an application under Section 12A of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 3 Jun 2022
- **Citation:** TCN-2022-NCLT-02419
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sikkim-hydro-power-ventures-ltd-ia-1584-nd-2022-in-ib-1635-nd-2018-aff004a4

## Summary

### Background

The case involves an application under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, filed in IA/1584/ND/2022, which arises from IB/1635/ND/2018. The Resolution Professional (RP) stated that the matter has been settled between AF Consult India Pvt Ltd and Sikkim Hydro Power Ventures Ltd. The CoC approved the settlement with 98.54% votes, leading to a request for withdrawal of the petition.

## Facts

AF Consult India Pvt Ltd initiated a corporate insolvency resolution process (CIRP) against Sikkim Hydro Power Ventures Ltd under Section 9 of the IBC, 2016. During the CIRP, the parties reached a settlement, which was approved by the Committee of Creditors (CoC) with 98.54% of the votes. The Resolution Professional (RP) then filed an application under Section 12A of the IBC to withdraw the CIRP. The RP confirmed that all dues and fees had been cleared. The key fact is the settlement between the parties and its approval by the CoC, leading to the withdrawal application.

## Issues and analysis

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

**Ratio:** Section 12A of the IBC allows for the withdrawal of a CIRP application if the

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

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

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**Application:** In this case, the settlement between AF Consult India Pvt Ltd and Sikkim Hydro

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## Parties

- **Judges:** DHARMINDER…; RAHUL BHA…
- **Appellants:** AF Consult India…
- **Respondents:** Sikkim Hydro…

## Timeline

- **2018-01-01 — Initiation…**: CIRP initiated against Sikkim Hydro…
- **2022-03-06 — Order Del…**: Order delivered allowing the application under…

## 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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