# In the matter of Varsha Mills Pvt. Ltd. IA 2487-2022 in C.P. (IB)-463-(MB)-2020

> NCLT judgment dated 2022-09-09. Citation: TCN-2022-NCLT-01130. The case involves an application (IA 2487/2022) filed by the Operational Creditor for the…

- **Court:** NCLT
- **Order date:** 9 Sept 2022
- **Citation:** TCN-2022-NCLT-01130
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/varsha-mills-pvt-ltd-ia-2487-2022-in-cp-ib-463-mb-2020-162c7aab

## Summary

### Background

The case involves an application (IA 2487/2022) filed by the Operational Creditor for the withdrawal of the main Company Petition, CP (IB)/463/(MB)/2020. The parties have amicably settled the matter out of court and have entered into a deed of settlement on 2022-04-22. The Corporate Debtor has agreed to pay Rs. 43,22,671/- to the Operational Creditor, which has been accepted as full and final settlement.

## Facts

Apple Lifecare India Pvt Ltd, the operational creditor, filed an application (IA 2487/2022) seeking to withdraw the main Company Petition CP (IB)/463/(MB)/2020 against Varsha Mills Private Limited, the corporate debtor. The parties reached an amicable settlement outside of court on 2022-04-22, documented in a deed of settlement. As part of the settlement, Varsha Mills Private Limited agreed to pay Rs. 43,22,671/- to Apple Lifecare India Pvt Ltd, which the operational creditor accepted as full and final settlement of the outstanding dues. The application for withdrawal was based on this settlement. The relevance of these facts lies in demonstrating the resolution of the dispute through mutual agreement, leading to the closure of the insolvency proceedings.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the main Company Petition should be allowed given the …

**Ratio:** The principle is that if parties to a dispute, especially in insolvency proceedings,

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

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**Interpretation:** This legal issue involves the interpretation of the Insolvency and Bankruptcy

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

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## Parties

- **Judges:** SH. SHYAM BABU…; P.N. Des…
- **Appellants:** Apple Lifecare…
- **Respondents:** Varsha Mills…

## Timeline

- **2020-01-01 — Filing of Company…**: Main Company Petition CP…
- **2022-04-22 — Deed of Set…**: Parties entered into a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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