# In the matter of Miletech Industries Pvt. Ltd. I.A. 2850-2021
in C.P.(IB)-1999(MB)-2019

> NCLT judgment dated 2021-12-10. Citation: TCN-2021-NCLT-00205. The case involves an application (I.A. 2850/2021) filed by the Operational Creditor under…

- **Court:** NCLT
- **Order date:** 10 Dec 2021
- **Citation:** TCN-2021-NCLT-00205
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/miletech-industries-pvt-ltd-ia-2850-2021-in-cpib-1999mb-2019-136118a3

## Summary

### Background

The case involves an application (I.A. 2850/2021) filed by the Operational Creditor under section 12A of the Insolvency and Bankruptcy Code (IBC) for the withdrawal of the Corporate Insolvency Resolution Process (CIRP) order that was previously passed against the Corporate Debtor. The application is based on a settlement reached between the parties. The applicant contends that despite submitting consent terms and Form FA to the Interim Resolution Professional (IRP) and paying Rs. 2 lacs towards initial CIRP costs, the IRP did not file the withdrawal application. The IRP insisted on a performance guarantee and payment of actual expenses, including travel, air tickets, and hotel charges, exceeding the initial Rs. 2 lacs.

## Facts

The Operational Creditor initiated CIRP against the Corporate Debtor. Subsequently, a settlement was reached between the parties. The Operational Creditor submitted consent terms and Form FA to the IRP and paid Rs. 2 lacs towards initial CIRP costs. However, the IRP did not file the withdrawal application, insisting on a performance guarantee and payment of actual expenses (travel, air tickets, hotel charges) exceeding Rs. 2 lacs. The Operational Creditor claims the total dues are around 21 lacs. Due to the IRP's inaction, the Operational Creditor filed an application (I.A. 2850/2021) for withdrawal of the CIRP order.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP order should be allowed given the settlement …

**Ratio:** The court has the discretion to allow the withdrawal of a CIRP order if it deems it

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**Reasoning:** The Bench felt that the case was a fit case to be considered for withdrawal of the CIRP

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**Interpretation:** Section 12A of the IBC allows for the withdrawal of a CIRP application with the

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**Application:** In this specific case, the court applied the ratio by considering the

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Raam Gowri…
- **Respondents:** Miletech Industrie…

## Timeline

- **2021-12-10 — Order Da…**: Order sheet of the hearing of Mumbai Bench…

## 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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