# In the matter of Orbit Electromech India Pvt. Ltd. M.A. 3176-2019 in C.P.(IB)-4228(MB)-2018

> NCLT judgment dated 2019-09-25. Citation: TCN-2019-NCLT-01275. The case involves an application filed by the Resolution Professional (RP) under Section 12(A)…

- **Court:** NCLT
- **Order date:** 25 Sept 2019
- **Citation:** TCN-2019-NCLT-01275
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/orbit-electromech-india-pvt-ltd-ma-3176-2019-in-cpib-4228mb-2018-1cec642a

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 12(A) of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of Corporate Insolvency Resolution Process (CIRP) initiated vide CP No. 4288 of 2018. The CP was admitted by the Bench on 23.07.2019.

## Facts

Quality Engineering (Baroda) Pvt Ltd initiated a Corporate Insolvency Resolution Process (CIRP) against Orbit Electromech India Pvt Ltd under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was admitted by the NCLT, Mumbai Bench, vide order dated 23.07.2019. Subsequently, the Resolution Professional (RP) filed an application (MA 3164/2019) under Section 12(A) of the IBC seeking withdrawal of the CIRP, stating that the matter had been amicably settled between the parties and the entire amount had been received. No claims were received, and the Committee of Creditors (COC) was not constituted. The RP relied on the Supreme Court's judgment in "Swiss Ribbons Pvt. Ltd. & Another Vs Union of India & Others" to support the withdrawal application.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP under Section 12(A) of the Insolvency and Bankruptcy …

**Ratio:** The legal principle applied is that the court has the discretion to allow the withdrawal

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**Reasoning:** The court reasoned that since the matter was amicably settled, the entire amount was

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**Interpretation:** Section 12(A) of the IBC allows for the withdrawal of CIRP with the approval of

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**Application:** In this case, the court applied the ratio and reasoning to the specific facts,

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## Parties

- **Judges:** Bhaskara Pantula…; Shyam Babu…
- **Respondents:** Orbit Electromech…

## Timeline

- **2018-01-01 — CP No. 4288…**: Corporate Insolvency…
- **2019-07-23 — Admission of CP No.…**: The Bench admitted the Corporate…

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