M/S. Morpheus Developers Pvt. Ltd. and M/S. Gagan Ferrotech Ltd. were involved in a dispute. On 07.06.2018, they entered into a MOU/Deed of Settlement to resolve their issues. The NCLT, New Delhi, issued an order on 11.06.2018, followed by another order on 09.07.2018. The Supreme Court, in its judgment, noted that the order dated 09.07.2018 was incorrect because Section 12A of the Amendment Act to the Insolvency Code, effective from 06.06.2018, allows the withdrawal of an application only with the approval of 90% of the voting share of the Committee of Creditors, but the settlement was reached before the admission order. The Supreme Court set aside both the NCLT orders, emphasizing that Section 12A does not apply when a settlement is reached before the admission order.

M/S. Morpheus Developers Pvt. Ltd. and M/S. Gagan Ferrotech Ltd. were involved in a dispute. On 07.06.2018, they entered into a MOU/Deed of Settlement to resolve their issues. The NCLT, New Delhi, issued an order on 11.06.2018, followed by another order on 09.07.2018. The Supreme Court, in its judgment, noted that the order dated 09.07.2018 was incorrect because Section 12A of the Amendment Act to the Insolvency Code, effective from 06.06.2018, allows the withdrawal of an application only with the approval of 90% of the voting share of the Committee of Creditors, but the settlement was reached before the admission order. The Supreme Court set aside both the NCLT orders, emphasizing that Section 12A does not apply when a settlement is reached before the admission order.