# In the matter of Excel Eltech (India) Pvt. Ltd. IA No. 535-2019 in CP(IB) No. 439-9-HDB-2018

> NCLT judgment dated 2019-07-09. Citation: TCN-2019-NCLT-02622. The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 9 Jul 2019
- **Citation:** TCN-2019-NCLT-02622
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/excel-eltech-india-pvt-ltd-ia-no-535-2019-in-cpib-no-439-9-hdb-2018-1a05aadb

## Summary

### Background

The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking permission to withdraw a company petition (CP(IB) No.439/9/HDB/2018) filed under Section 9 of the IBC. The Adjudicating Authority had admitted the application in CP(IB) No. 439/9/HDB/2018 filed by the Operational Creditor, Atmel Global Sales Limited. The Interim Resolution Professional (IRP) was appointed and initiated Corporate Insolvency Resolution Process (CIRP) proceedings. The operational creditor and corporate debtor agreed to settle the matter for $1,00,000 (USD), which was paid by Excel Eltech.Inc USA on behalf of the Corporate Debtor, Excel Eltech (India) Pvt Ltd.

## Facts

Atmel Global Sales Limited, an operational creditor, filed a company petition (CP(IB) No. 439/9/HDB/2018) under Section 9 of the IBC against Excel Eltech (India) Pvt Ltd. The Adjudicating Authority admitted the application, initiating CIRP, and appointed an Interim Resolution Professional (IRP). The IRP made a public announcement of the CIRP initiation. Subsequently, in a Committee of Creditors (COC) meeting, both the operational creditor and the corporate debtor agreed to settle the matter for $1,00,000 (USD), which was paid by Excel Eltech.Inc USA on behalf of Excel Eltech (India) Pvt Ltd. The operational creditor then expressed willingness to withdraw the case and issued Form FA. The COC unanimously approved the withdrawal application with 100% voting share. The IRP

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of an application admitted under …

**Ratio:** Section 12A of the IBC allows the Adjudicating Authority to permit the withdrawal of an

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**Reasoning:** The court reasoned that Section 12A of the IBC explicitly empowers the Adjudicating

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**Interpretation:** Section 12A provides a mechanism for parties to settle disputes and withdraw

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**Application:** In this case, the application for withdrawal was filed under Section 12A of the

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## Parties

- **Judges:** Ratakonda…
- **Respondents:** Excel Eltech…

## Timeline

- **2018-01-01 — CP(IB) F…**: Company Petition CP(IB) No.…
- **2019-04-22 — Application A…**: Adjudicating Authority admitted 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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