# 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-02639. The case involves an application for withdrawal of insolvency resolution proceedings against…

- **Court:** NCLT
- **Order date:** 19 Mar 2021
- **Citation:** TCN-2021-NCLT-02639
- **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-a894ddda

## Summary

### Background

The case involves an application for withdrawal of insolvency resolution proceedings against Empathy Infra & Engineering Pvt. Ltd., the corporate debtor, by Bhuleshwar Steel & Alloys Pvt. Ltd., the operational creditor. The Corporate Insolvency Resolution Process (CIRP) was initiated, but no Committee of Creditors (CoC) was constituted due to the lack of claims from financial or operational creditors. The petitioner and the corporate debtor reached a settlement, leading to the application for withdrawal.

## Facts

Bhuleshwar Steel & Alloys Pvt. Ltd., an operational creditor, initiated CIRP against Empathy Infra & Engineering Pvt. Ltd., the corporate debtor. CP (IB) No.234/Chd/Hry/2018 was admitted on 2019-12-19. Despite the admission, no Committee of Creditors (CoC) was formed because no claims were received from financial or operational creditors. Subsequently, a belated claim was received but not admitted. The operational creditor and the corporate debtor reached a settlement and filed an application to withdraw the CIRP under Section 12A of the Insolvency and Bankruptcy Code, 2016. The Interim Resolution Professional's expenses were fully paid. The applicant filed Form FA seeking withdrawal of the application.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of

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**Reasoning:** The court reasoned that since no CoC was constituted due to the lack of claims from

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**Interpretation:** Section 12A is interpreted to provide a mechanism for withdrawing CIRP when a

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**Application:** In this specific case, the court applied the principle that the absence of a

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## Parties

- **Judges:** RaghuNa…; Ajay Kumar…
- **Appellants:** Bhuleshwar Steel…
- **Respondents:** Empathy Infra &…

## Timeline

- **2018-01-01 — CP (IB)…**: CP (IB) No.234/Chd/Hry/2…
- **2019-12-19 — CP (IB) Ad…**: CP (IB) No.234/Chd/Hry/2018 was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12 — Time-limit for completion of insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12)

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