# In the matter of Canara Bank vs. TRN Energy Pvt. Ltd. & Ors.

> NCLAT judgment dated 2024-04-04. Citation: TCN-2024-NCLAT-00538. The appeal arises from an order dated 07.02.2023 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 4 Apr 2024
- **Citation:** TCN-2024-NCLAT-00538
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/canara-bank-vs-trn-energy-pvt-ltd-ors-b10a6412

## Summary

### Background

The appeal arises from an order dated 07.02.2023 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench – V) dismissing I.A. No. 226 of 2023 filed by the Appellant under Rule 11 of the NCLT Rules, 2016, seeking revival of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, TRN Energy Pvt. Ltd. The CIRP was initially initiated based on an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by Natraj Transport (Operational Creditor). The application was admitted on 07.12.2021, and Ramkripal Sharma was appointed as the Interim Resolution Professional (IRP). Subsequently, the Operational Creditor sought to withdraw the petition, which was initially allowed, but later, the Operational

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## Facts

1. Natraj Transport (Operational Creditor) initiated CIRP against TRN Energy Pvt. Ltd. (Corporate Debtor) under Section 9 of the IBC.
2. The CIRP application was admitted on 07.12.2021, and Ramkripal Sharma was appointed as IRP.
3. The Operational Creditor filed Form-FA to withdraw the petition, which was initially allowed.
4. The Operational Creditor then filed RA/82/2022 to revive the CIRP, which was also allowed on 30.11.2022.
5. The IRP invited claims with a deadline of 23.12.2022.
6. Canara Bank (Financial Creditor) submitted its claim to the IRP on 21.12.2022.
7. The IRP filed I.A. No. 6271 of 2022 for withdrawal of the CIRP under Section 12A of the IBC, based on a settlement between the Corporate Debtor and Operational Creditor.
8. The Adjudicating Authority allowed

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in dismissing the application for revival of the CIRP …

**Ratio:** The Adjudicating Authority has a duty to ensure that all relevant facts are brought to

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**Reasoning:** The court reasoned that the IRP's admission of error in not disclosing Canara Bank's

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**Interpretation:** This highlights the importance of accurate and transparent reporting by the IRP

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**Application:** In this case, the IRP's failure to disclose Canara Bank's claim directly led to

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Canara…
- **Respondents:** TRN Energy Pvt.…

## Timeline

- **2021-12-07 — CIRP Application…**: The application for initiation of CIRP…
- **2021-12-16 — Form FA Sub…**: Operational Creditor submitted Form…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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