# In the matter of Vama Wovenfab Pvt. Ltd. IA 2062-2022 In C.P.(IB)-4196(MB)2019

> NCLT judgment dated 2022-08-04. Citation: TCN-2022-NCLT-01457. The case involves an application bearing No.2062 of 2022 filed by the Interim Resolution…

- **Court:** NCLT
- **Order date:** 4 Aug 2022
- **Citation:** TCN-2022-NCLT-01457
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vama-wovenfab-pvt-ltd-ia-2062-2022-in-cpib-4196mb2019-6e244572

## Summary

### Background

The case involves an application bearing No.2062 of 2022 filed by the Interim Resolution Professional (IRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking withdrawal of the main Company Petition bearing No. C.P. (IB) /4196 (MB) 2019. The IRP submitted that both parties had amicably settled the matter and signed a settlement memo for Rs. 10,00,000/- for the amount due to the Corporate Debtor. The CIRP cost of Rs. 3,00,000/- has also been paid towards the expenses of the Resolution Professional.

## Facts

The Interim Resolution Professional (IRP) filed an application (No. 2062 of 2022) under Section 12A of the IBC, 2016, to withdraw the main Company Petition (No. C.P. (IB) /4196 (MB) 2019). The IRP stated that both parties had amicably settled the matter, signing a settlement memo for Rs. 10,00,000/- due to the Corporate Debtor. Additionally, Rs. 3,00,000/- was paid towards CIRP costs. The application was filed because the parties reached a settlement, making the continuation of the insolvency process unnecessary. The settlement and payment of CIRP costs are key facts that led to the court's decision to allow the withdrawal.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Company Petition under Section 12A of the IBC, 2016, …

**Ratio:** Section 12A of the IBC, 2016, allows for the withdrawal of an application admitted under

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**Reasoning:** The court reasoned that since the parties had amicably settled the matter and the

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

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**Application:** In this case, the IRP submitted that the parties had settled the matter and

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## Parties

- **Judges:** TELAPROLU…; SH. SHYAM BABU…
- **Respondents:** Jai Corp L…

## Timeline

- **2022-08-04 — Hearing…**: Order sheet of the…
- **2022-01-01 — Application…**: Application bearing No.2062 of 2022 filed…

## 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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