# In the matter of Arempee Compressors Pvt. Ltd. IA-11 & 12-2021 in IBA-1274-2019

> NCLT judgment dated 2021-01-22. Citation: TCN-2021-NCLT-03248. The application was filed under Section 12A of the Insolvency & Bankruptcy Code, 2016 (IBC,…

- **Court:** NCLT
- **Order date:** 22 Jan 2021
- **Citation:** TCN-2021-NCLT-03248
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arempee-compressors-pvt-ltd-ia-11-12-2021-in-iba-1274-2019-75c81820

## Summary

### Background

The application was filed under Section 12A of the Insolvency & Bankruptcy Code, 2016 (IBC, 2016) r/w attendant provisions & Regulations for termination of the CIRP initiated against the Corporate Debtor by this Tribunal in IBA/1274/2019 vide order dated 23.12.2020. The purpose was to discharge the Applicant / IRP in relation to the duty and role of the Interim Resolution Professional and to revive the Board of Directors to the Corporate Debtor as it existed prior to the CIRP commenced on 23.12.2020, pursuant to the admission of the Petition filed by the Operational Creditor.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Arempee Compressors Pvt Ltd. An application was filed under Section 12A of the Insolvency & Bankruptcy Code, 2016, seeking the termination of the CIRP. The CIRP was initiated based on a petition filed by the Operational Creditor. The Interim Resolution Professional (IRP), CA Ayyampalayam Venkatesan Arun, made paper publications in newspapers on 23.12.2020 and 27.12.2020, calling for claims. Eleven claims were received, but only one claim related to a Financial Creditor, Tamilnad Mercantile Bank Limited. A settlement was reached between the Operational Creditor and the Corporate Debtor. The IRP's fees and expenses were taken care of, including the CIRP costs. The application was filed in

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## Issues and analysis

### Issue 1: Whether the application filed under Section 12A of the Insolvency & Bankruptcy Code, 2016, for …

**Ratio:** Section 12A of the IBC allows for the withdrawal of an application admitted under Section

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**Reasoning:** The court considered the settlement arrived at between the Operational Creditor and the

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**Interpretation:** Section 12A provides a mechanism for the termination of CIRP when a settlement

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**Application:** In this case, the settlement between the Operational Creditor and the Corporate

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** CA Ayyampalayam…
- **Respondents:** Arempee Compressor…
- **Advocates:** S. Sathiyanarayana…; Deepika M…; +1 more

## Timeline

- **2019-01-01 — Petition…**: IBA/1274/2019 petition…
- **2020-12-23 — CIRP Init…**: CIRP initiated against the…

## 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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