# In the matter of Indlab Equipments Private Ltd. I.A. No. 03 of 2021 in CP (IB) No. 319-BB-2019

> NCLT judgment dated 2021-01-19. Citation: TCN-2021-NCLT-03269. The case involves an application (I.A No. 03 of 2021) filed in CP (IB) No. 319/BB/2019, which…

- **Court:** NCLT
- **Order date:** 19 Jan 2021
- **Citation:** TCN-2021-NCLT-03269
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/indlab-equipments-private-ltd-ia-no-03-of-2021-in-cp-ib-no-319-bb-2019-7b595ed0

## Summary

### Background

The case involves an application (I.A No. 03 of 2021) filed in CP (IB) No. 319/BB/2019, which was initially filed by Sir M. Visvesvaraya Co-Operative Bank Ltd under Section 7 of the I&B Code, 2016, for initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The CIRP was admitted on 19.02.2020, and an Interim Resolution Professional (IRP) was appointed. Public announcements were made. The Committee of Creditors (COC) was formed, and the Applicant was appointed as the Resolution Professional. Due to the impact of COVID-19 and the nature of the Corporate Debtor's business (catering to schools and educational institutions), no resolution plan was received. The Applicant Bank then proposed a withdrawal of the CIRP under Section 12A of

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## Facts

Sir M. Visvesvaraya Co-Operative Bank Ltd initiated CIRP against Indlab Equipments Private Ltd under Section 7 of the I&B Code, 2016. The CIRP was admitted on 19.02.2020, and Addanki Haresh was appointed as the IRP, later as Resolution Professional. Public announcements were made. The COC was formed, consisting primarily of Sir M Visvesvaraya Co-Operative Bank Limited (89.47% voting share) and Bank of Baroda Ltd (10.53% voting share). Due to COVID-19, the Corporate Debtor, which caters to schools and educational institutions, faced difficulties, and no resolution plan was received. The Applicant Bank (Sir M Visvesvaraya Co-Operative Bank) reached a One-Time Settlement with the suspended Directors. The Applicant then filed I.A No. 03 of 2021 to withdraw the CIRP

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC should be allowed, …

**Ratio:** Section 12A of the IBC allows for the withdrawal of CIRP with the approval of 90% of the

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**Reasoning:** The court reasoned that the Financial Creditors had settled the issue with the suspended

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**Interpretation:** Section 12A of the IBC is interpreted to provide a mechanism for creditors to

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**Application:** In this case, the Financial Creditors had settled with the suspended Directors,

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Addanki H…
- **Respondents:** Indlab Equipments…

## Timeline

- **2019-02-19 — Filing of CP (IB) No.…**: Sir M. Visvesvaraya Co-Operative Bank Ltd filed CP (IB) No. 319/BB/2019 under Section 7…
- **2020-02-19 — Admission o…**: The Adjudicating Authority admitted the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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