# M/s. Agrawal Infracab Pvt. Ltd. vs. M/s. Lanarsy Infra Ltd.

> NCLT judgment dated 2026-07-31. Citation: TCN-2026-NCLT-00880. M/s. Agrawal Infracab Pvt. Ltd., an operational creditor, initiated Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 31 Jul 2026
- **Citation:** TCN-2026-NCLT-00880
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-bengaluru/ms-agrawal-infracab-pvt-ltd-vs-ms-lanarsy-infra-ltd-c3ur2

## Summary

### Background

M/s. Agrawal Infracab Pvt. Ltd., an operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Lanarsy Infra Ltd. under Section 9 of the IBC, 2016, leading to the Corporate Debtor's admission to CIRP on May 19, 2026. The suspended director, Ms. Bayyavarapu Padmja, challenged this order before the NCLAT, Chennai. During the appeal, a settlement was reached between the parties, prompting the Interim Resolution Professional (IRP) to file an application under Section 12A of the IBC for withdrawal of the CIRP.

## Facts

M/s. Agrawal Infracab Pvt. Ltd. filed a petition under Section 9 of IBC, 2016 against M/s. Lanarsy Infra Ltd.

The Corporate Debtor, M/s. Lanarsy Infra Ltd., was admitted to CIRP vide Order dated 19.05.2026.

Ms. Bayyavarapu Padmja, Suspended Director of the Corporate Debtor, challenged the CIRP admission order before Hon'ble NCLAT, Chennai by filing Company Appeal (AT) (CH) (Ins.) No.278/2026.

On 09.06.2026, a memo was filed before NCLAT regarding a full and final settlement having already been executed by the parties.

The NCLAT directed the parties to consider the contentions of payment of amount and other dues under the settlement in a CoC meeting before giving it finality.

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP under Section 12A of IBC, 2016, based on a …

**Ratio:** An application for withdrawal of CIRP under Section 12A of IBC, 2016, can be allowed if

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**Reasoning:** The CoC, having been duly constituted and having considered the settlement agreement,

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**Interpretation:** Section 12A of the IBC allows for the withdrawal of CIRP if the CoC approves it

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**Application:** The NCLT allowed the withdrawal application, acknowledging the CoC's decision,

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## Parties

- **Judges:** Sunil Kumar…; Radhakrishna…
- **Appellants:** Bayyavarapu…; IRP of the…
- **Respondents:** M/s. Lanarsy…; M/s. Agrawal…
- **Other parties:** Committee of…; Union Bank of…; +3 more
- **Advocates:** Srishti J…; C.K. Nand…; +3 more

## Timeline

- **2026-05-19 — CIRP Admi…**: Corporate Debtor (M/s. Lanarsy Infra Ltd.) admitted to CIRP based on a Section 9 petition…
- **2026-05-24 — Public Notice…**: IRP issued a public notice regarding the…

## 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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