# In the matter of P.V.K. Engineers Private Limited IA No. 862-2020 in CP (IB) No. 672-7-HDB-2019

> NCLT judgment dated 2020-10-13. Citation: TCN-2020-NCLT-00404. The case involves an application for withdrawal of a Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 13 Oct 2020
- **Citation:** TCN-2020-NCLT-00404
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pvk-engineers-private-limited-ia-no-862-2020-in-cp-ib-no-672-7-hdb-2019-8f533241

## Summary

### Background

The case involves an application for withdrawal of a Corporate Insolvency Resolution Process (CIRP) initiated against PVK Engineers Private Limited. The CIRP was initiated based on an application filed by the Financial Creditor, Abhirama Steels Limited, which was admitted by the Adjudicating Authority on 2020-09-21. Subsequently, the Corporate Debtor settled its dues with the Financial Creditor, leading to the Financial Creditor submitting Form FA and issuing a Demand Draft for CIRP costs. The Interim Resolution Professional (IRP) then filed an application for withdrawal of the CIRP.

## Facts

Abhirama Steels Limited, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against PVK Engineers Private Limited, the Corporate Debtor. The Adjudicating Authority admitted the application on 2020-09-21 and appointed Mr. Sri Vamsi Kambhammettu as the Interim Resolution Professional (IRP). Subsequently, the Corporate Debtor settled its dues with the Financial Creditor. The Financial Creditor then submitted Form FA and issued a Demand Draft for ₹50,000 towards CIRP costs to the IRP. The IRP filed an application (IA No. 862 of 2020) seeking permission to withdraw the CIRP. The application was filed in compliance with Section 12A of the IB Code and Regulation 30A of the IBBI Regulations. The

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP is in compliance with Section 12A of the …

**Ratio:** Section 12A of the IB Code allows for the withdrawal of an application admitted under

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**Reasoning:** The Adjudicating Authority observed that the provisions of Regulation 30A were duly

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**Interpretation:** Section 12A provides a mechanism for settling disputes and withdrawing CIRP

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**Application:** In this case, the Corporate Debtor settled its dues with the Financial

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## Parties

- **Judges:** K. Anantha…
- **Respondents:** PVK Engineers…; Abhirama Steels…

## Timeline

- **2019-01-01 — CP (IB)…**: CP (IB) No.672/7/HDB/201…
- **2020-09-21 — CIRP Initiati…**: Adjudicating Authority passed an order admitting the application for initiation of CIRP…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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