# In the matter of Opto Circuits (India) Ltd. I.A. 273-2020 in C.P. (IB) 199-BB-2018

> NCLT judgment dated 2020-08-17. Citation: TCN-2020-NCLT-00839. The case involves an application (I.A. No. 273 of 2020) filed in connection with a corporate…

- **Court:** NCLT
- **Order date:** 17 Aug 2020
- **Citation:** TCN-2020-NCLT-00839
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/opto-circuits-india-ltd-ia-273-2020-in-cp-ib-199-bb-2018-9e640ec3

## Summary

### Background

The case involves an application (I.A. No. 273 of 2020) filed in connection with a corporate insolvency resolution process (CIRP) initiated against M/s. Opto Circuits (India) Limited. The CIRP was triggered by ICICI Bank under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The corporate debtor faced challenges, including a stay on the CIRP by the High Court of Karnataka. During the stay, the corporate debtor proposed a One Time Settlement (OTS) to ICICI Bank, which was accepted. The applicant, Mr. Vinod Ramnani, a shareholder of the corporate debtor, sought to dispose of the matter in light of the settlement.

## Facts

ICICI Bank initiated CIRP against M/s. Opto Circuits (India) Limited under Section 7 of the IBC. The NCLT admitted the case on 2020-03-18, appointing an Interim Resolution Professional (IRP) and imposing a moratorium. The IRP issued a public announcement on 2020-03-20. The Corporate Debtor filed a Writ Petition before the High Court of Karnataka seeking a stay on the CIRP order. The High Court granted a stay and directed the Petitioner to prefer an appeal before NCLAT. The Corporate Debtor approached the High Court again for further extension of the stay. During the stay, the Corporate Debtor proposed a One Time Settlement (OTS) to ICICI Bank, which was accepted on 2020-07-10. ICICI Bank received Rs. 45 million as part payment towards the OTS. Mr. Vinod Ramnani, a

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can terminate the CIRP proceedings in light of the settlement …

**Ratio:** Section 12A of the I&B Code, read with Regulation 30A of the IBBI Regulations, allows

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**Reasoning:** The court reasoned that since the parties had settled the issue, and the Committee of

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**Interpretation:** Section 12A and Regulation 30A provide a mechanism for withdrawing CIRP

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**Application:** In this case, the Financial Creditor (ICICI Bank) and the Corporate Debtor had

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Vinod Ra…
- **Respondents:** M/s. Opto…; Pankaj Sriv…

## Timeline

- **2018-01-01 — CIRP Init…**: CIRP initiated by ICICI Bank against…
- **2020-03-18 — Admission o…**: NCLT admitted the CIRP…

## 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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