# In the matter of Empathy Infra & Engineering Pvt. Ltd. IA No. 110 & 171-2021 in CP (IB) No. 234-Chd-Hry-2018

> NCLT judgment dated 2021-03-19. Citation: TCN-2021-NCLT-02643. The application was filed by the Interim Resolution Professional (IRP) seeking withdrawal of…

- **Court:** NCLT
- **Order date:** 19 Mar 2021
- **Citation:** TCN-2021-NCLT-02643
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/empathy-infra-engineering-pvt-ltd-ia-no-110-171-2021-in-cp-ib-no-234-chd-hry-201-0ba8d884

## Summary

### Background

The application was filed by the Interim Resolution Professional (IRP) seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, following a settlement between the operational creditor and the corporate debtor.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Empathy Infra & Engineering Pvt. Ltd. (corporate debtor) based on an application filed by Bhuleshwar Steel & Alloys Pvt. Ltd. (operational creditor). The application, CP (IB) No.234/Chd/Hry/2018, was admitted by the Adjudicating Authority on December 19, 2019. Despite the admission, no Committee of Creditors (CoC) was constituted because no claims were received from any financial or operational creditors. Subsequently, a belated claim was received from an operational creditor, but it was not admitted. At this juncture, the operational creditor and the corporate debtor reached a settlement. Following this settlement, an application was submitted seeking the withdrawal of the CIRP.

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## Issues and analysis

### Issue 1: Whether the insolvency resolution proceedings against the corporate debtor can be withdrawn under …

**Ratio:** In cases where no Committee of Creditors has been constituted and a settlement is reached

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**Reasoning:** The NCLT reasoned that since no Committee of Creditors (CoC) was constituted due to the

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**Interpretation:** The court interpreted **Section 12A** and **Regulation 30A** to allow for the

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**Application:** Given that no CoC was formed and the operational creditor and corporate debtor

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## Parties

- **Judges:** RAGHU N…; Ajay Kumar…; +1 more
- **Appellants:** Bhuleshwar Steel…
- **Respondents:** Empathy Infra &…
- **Advocates:** Nitin Kant…; Poorit…; +4 more

## Timeline

- **December 19, 2019 — CIRP Adm…**: CP (IB) No.234/Chd/Hry/2018 was admitted by the Adjudicating Authority, initiating CIRP…
- **March 19, 2021 — IA No.171/2021…**: The NCLT allowed IA No.171/2021, permitting the withdrawal of the CIRP 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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