# 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-01466. 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-01466
- **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-fa97a705

## 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 have amicably settled the matter and signed a settlement memo for Rs. 10,00,000/- for the amount due and payable to the Corporate Debtor. Additionally, Rs. 3,00,000/- CIRP cost has been paid towards the expenses of the Resolution Professional.

## Facts

An application (No. 2062 of 2022) was filed by the Interim Resolution Professional (IRP) under Section 12A of the IBC, 2016, seeking to withdraw the main Company Petition (C.P. (IB) /4196 (MB) 2019). The IRP stated that both parties had amicably settled the matter and signed a settlement memo for an agreed amount of Rs. 10,00,000/- to be paid to the Corporate Debtor. Furthermore, Rs. 3,00,000/- had been paid towards CIRP costs. The application was filed because the parties reached a settlement, indicating a resolution of the financial dispute that initially led to the insolvency proceedings. The settlement and payment of CIRP costs are key facts that justify the withdrawal of the insolvency petition.

## 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 allows for the withdrawal of an application admitted under the IBC

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**Reasoning:** The court reasoned that since the IRP submitted that the parties had amicably settled the

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

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**Application:** In this case, the ratio and reasoning were applied to the specific facts where

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## Parties

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

## Timeline

- **2019-01-01 — Company Petiti…**: Company Petition bearing No. C.P.…
- **2022-01-01 — Application for…**: Application bearing No.2062 of 2022 filed by the Interim Resolution Professional 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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