# In the matter of Tattva & Mittal Lifespaces Pvt. Ltd. IA-2699,2873 & 2928-2021 in C.P. (IB)-3072(MB)2019

> NCLT judgment dated 2022-04-20. Citation: TCN-2022-NCLT-03199. The case involves an application (IA-2699/2021) filed by the Interim Resolution Professional…

- **Court:** NCLT
- **Order date:** 20 Apr 2022
- **Citation:** TCN-2022-NCLT-03199
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tattva-mittal-lifespaces-pvt-ltd-ia-26992873-2928-2021-in-cp-ib-3072mb2019-04892fc0

## Summary

### Background

The case involves an application (IA-2699/2021) filed by the Interim Resolution Professional (IRP) enclosing a joint memo reporting settlement terms between Petitioner No.1 and Petitioner No.2 with the Corporate Debtor, dated 08.11.2021. The matter has been settled between the Financial Creditor and Corporate Debtor, leading to the IRP filing for withdrawal of CIRP proceedings against the Corporate Debtor under section 12(A) of the Insolvency and Bankruptcy Code (IBC). Two other applications (IA-2928/2021 and IA-2873/2021) were filed by Operational Creditors objecting to the 12A application, claiming their claims were not admitted by the IRP.

## Facts

India Asset Growth Fund II initiated CIRP against Tattva And Mittal Lifespaces Private Limited. A settlement was reached between the Financial Creditor (Petitioner No.1 and Petitioner No.2) and the Corporate Debtor. The IRP filed IA-2699/2021 to withdraw the CIRP under Section 12A of the IBC. Two Operational Creditors filed IA-2928/2021 and IA-2873/2021 objecting to the withdrawal, arguing that the IRP had not admitted their claims. The Resolution Professional (RP) submitted that a payment of Rs. 4 lakh is pending. The outstanding amount of the issue of debentures is Rs. 31.60 Crore plus interest. The court noted that once a 12A application is accepted and the Corporate Debtor exits CIRP, the question of the IRP admitting or rejecting claims does not arise, and the

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## Issues and analysis

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

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

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**Reasoning:** The court reasoned that a settlement had been reached between the Financial Creditor and

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

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**Application:** The court applied Section 12A to the facts, noting the settlement between the

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## Parties

- **Judges:** RAJESH S…; KISHORE VEMULAPALL…
- **Appellants:** India Asset…
- **Respondents:** Tattva & Mittal…
- **Advocates:** Onkaar Chan…; Aniruddh…; +1 more

## Timeline

- **2021-11-08 — Settlement Ag…**: Joint memo reporting settlement terms entered between the Petitioner No.1 and Petitioner…
- **2022-04-20 — Hearing…**: Order sheet of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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