# In the matter of ETA Engineering Pvt. Ltd. IA-1131(CHE)2021 in IBA-89-2020

> NCLT judgment dated 2021-11-15. Citation: TCN-2021-NCLT-00502. The case involves an application filed by the Interim Resolution Professional (IRP) under the…

- **Court:** NCLT
- **Order date:** 15 Nov 2021
- **Citation:** TCN-2021-NCLT-00502
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/eta-engineering-pvt-ltd-ia-1131che2021-in-iba-89-2020-0f86fc42

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) under the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor. The CIRP was initiated vide order dated 02.11.2021. The IRP sought withdrawal of the CIRP under Section 12A of the Insolvency & Bankruptcy Code, 2016, as the Operational Creditor and the Corporate Debtor had settled their claims.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor via an order dated 02.11.2021. The Applicant was appointed as the Interim Resolution Professional (IRP). Subsequently, the Operational Creditor and the Corporate Debtor reached a settlement, documented in a Memorandum of Joint Settlement dated 05.11.2021. The IRP received Form-FA from the Operational Creditor, Trane Technologies India Private Limited, also dated 05.11.2021. The settlement amount was Rs.26,80,642/-, and the entire payment was received by 05.11.2021. The IRP filed an application seeking withdrawal of the CIRP under Section 12A of the Insolvency & Bankruptcy Code, 2016. The IRP's counsel stated that all expenses and fees had been received. The settlement

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## Issues and analysis

### Issue 1: Whether the withdrawal of the CIRP under Section 12A of the Insolvency & Bankruptcy Code, 2016 …

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

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**Reasoning:** The court reasoned that since the Operational Creditor and the Corporate Debtor had

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**Interpretation:** Section 12A provides a mechanism for withdrawal of CIRP applications. The Swiss

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**Application:** In this case, the Operational Creditor and the Corporate Debtor had settled

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## Parties

- **Judges:** R. Sucha…; SAMEER…
- **Appellants:** Varun Ag…
- **Respondents:** Trane Technologies…

## Timeline

- **2021-11-02 — CIRP Init…**: CIRP was initiated on…
- **2021-11-05 — Settlement Ag…**: Operational Creditor and Corporate Debtor settled their claim vide Memorandum of Joint…

## 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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