# In the matter of Kelvion India Pvt. Ltd. I.A. 2186-2021 in C.P.(IB)-846(MB)-2020

> NCLT judgment dated 2021-10-01. Citation: TCN-2021-NCLT-00899. The case involves an application (I.A. 2186/2021) filed by the Interim Resolution Professional…

- **Court:** NCLT
- **Order date:** 1 Oct 2021
- **Citation:** TCN-2021-NCLT-00899
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kelvion-india-pvt-ltd-ia-2186-2021-in-cpib-846mb-2020-0b732dd2

## Summary

### Background

The case involves an application (I.A. 2186/2021) filed by the Interim Resolution Professional (IRP), Mr. Manojkumar Jain, under Section 12A of the Insolvency and Bankruptcy Code (IBC) for withdrawing the main Company Petition 846 of 2020. This withdrawal is sought due to a settlement reached between the Operational Creditor and the Corporate Debtor. The Corporate Debtor informed the Applicant via email on 24.09.2021 that they had amicably settled the matter for Rs. 60,00,000/- against a total claim of Rs. 70,70,701/-. A demand draft (No. 012355) was handed over to the Operational Creditor after the settlement deed was executed on 17.09.2021. The Operational Creditor also paid the IRP fees of Rs. 1,00,000/-, which included legal expenses for withdrawing the Corporate

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## Facts

President Engineering Works initiated CIRP against Kelvion India Pvt. Ltd. The IRP, Mr. Manojkumar Jain, filed I.A. 2186/2021 under Section 12A of the IBC to withdraw the CIRP due to a settlement between President Engineering Works (Operational Creditor) and Kelvion India Pvt. Ltd. (Corporate Debtor). The settlement involved Kelvion India Pvt. Ltd. paying Rs. 60,00,000/- against a claim of Rs. 70,70,701/-. A demand draft was handed over, and a settlement deed was executed on 17.09.2021. President Engineering Works also paid Rs. 1,00,000/- to cover the IRP fees and legal expenses for the CIRP withdrawal. Form FA was submitted on 24.09.2021 for the withdrawal. The CIRP admission order dated 08.09.2021 was withdrawn, releasing Kelvion India Pvt. Ltd. from the moratorium.

## Issues and analysis

### Issue 1: Whether the application filed by the IRP under Section 12A of the IBC for withdrawal of the CIRP is …

**Ratio:** Section 12A of the IBC allows for the withdrawal of CIRP if the Adjudicating Authority

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**Reasoning:** The court considered the submissions made by the IRP and the fact that a settlement had

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**Interpretation:** Section 12A provides a mechanism for CIRP withdrawal when a settlement is

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**Application:** In this case, the settlement between President Engineering Works and Kelvion

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Respondents:** Kelvion India…

## Timeline

- **2020-01-01 — Main Company Petition…**: Company Petition 846 of…
- **2021-09-08 — CIRP Admissio…**: CIRP admission order was passed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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