# In the matter of Auromatrix Hotels Pvt. Ltd. IA-348(CHE)-2021 in IBA-436-2020

> NCLT judgment dated 2021-04-29. Citation: TCN-2021-NCLT-02253. The application was filed by the Interim Resolution Professional (IRP) under Section 12A of the…

- **Court:** NCLT
- **Order date:** 29 Apr 2021
- **Citation:** TCN-2021-NCLT-02253
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/auromatrix-hotels-pvt-ltd-ia-348che-2021-in-iba-436-2020-9e2f52f1

## Summary

### Background

The application was filed by the Interim Resolution Professional (IRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 30A (3) of the Corporate Insolvency Resolution Process (CIRP) Regulations, seeking withdrawal of the CIRP proceedings. The Adjudicating Authority had admitted IBA/436/2020 on 08.04.2021 and appointed the applicant as the IRP for the commencement of CIRP proceedings against Auromatrix Hotels Private Limited. Subsequently, the Corporate Debtor and the Applicant arrived at a consent agreement and settled their dues before the constitution of the Committee of Creditors (CoC) and the issuance of a public announcement. The applicant also filed Form FA dated 12.04.2021 as per the regulations. The present application

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## Facts

The Edelweiss Asset Reconstruction Company Ltd initiated CIRP against Auromatrix Hotels Pvt Ltd under IBA/436/2020. The Adjudicating Authority admitted the application on 08.04.2021 and appointed an Interim Resolution Professional (IRP). Before the constitution of the Committee of Creditors (CoC) and the issuance of a public announcement, the Corporate Debtor and the Applicant reached a consent agreement and settled the dues. The Applicant then filed IA/348(CHE)/2021 seeking withdrawal of the CIRP proceedings. The application for withdrawal was based on Section 12A of the IBC, 2016, read with Regulation 30A (3) of the CIRP Regulations. The key fact is that the settlement occurred before the CoC was formed, which is a crucial factor in determining the permissibility of

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP proceedings under Section 12A of the IBC can be …

**Ratio:** An insolvency application that has been admitted can be withdrawn at any point during the

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**Reasoning:** The court relied on the Supreme Court's rulings in Brilliant Alloys Private Limited Vs.

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

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**Application:** In this case, the settlement between Edelweiss Asset Reconstruction Company Ltd

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** Edelweiss Asset…
- **Respondents:** Auromatrix Hotels…

## Timeline

- **2021-04-08 — Admission of IBA/436/202…**: The Adjudicating Authority admitted…
- **2021-04-12 — Filing of F…**: The Applicant filed Form FA dated…

## 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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