# In the matter of R. D. Engineers (India) Private Limited I.A. 49 of 2021In C.P. (IB) 925-MB-2020

> NCLT judgment dated 2021-04-16. Citation: TCN-2021-NCLT-02348. The case involves an application filed by the Resolution Professional (RP) under Section 12A of…

- **Court:** NCLT
- **Order date:** 16 Apr 2021
- **Citation:** TCN-2021-NCLT-02348
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/r-d-engineers-india-private-limited-ia-49-of-2021in-cp-ib-925-mb-2020-a01bce0f

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) under Section 12A of the Insolvency and Bankruptcy Code (IBC) seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, R. D. Engineers (India) Private Limited. A petition under Section 9 of the Code had been admitted on 26.10.2020, regarding a debt of Rs. 4,23,77,899/- including interest. Mr. Laxman Digambar Pawar was appointed as the Interim Resolution Professional (IRP).

## Facts

Mr. Mukesh Sumermal Sanghvi, the Petitioner, initiated a Corporate Insolvency Resolution Process (CIRP) against R. D. Engineers (India) Private Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The petition was admitted on 26.10.2020, for a debt of Rs. 4,23,77,899/-. Mr. Laxman Digambar Pawar was appointed as the Interim Resolution Professional (IRP). Subsequently, the Petitioner and the Corporate Debtor reached a settlement agreement on 26.10.2020, where the Corporate Debtor agreed to pay Rs. 3,45,05,347/- to settle the outstanding debt. The Resolution Professional (RP) then filed an application under Section 12A of the IBC to withdraw the CIRP. The settlement occurred before the formation of a Committee of Creditors

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) under …

**Ratio:** Section 12A of the IBC allows for the withdrawal of CIRP upon application by the

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**Reasoning:** The court reasoned that a settlement had been reached between the Petitioner and the

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**Interpretation:** Section 12A provides a mechanism for withdrawal of CIRP if certain conditions

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**Application:** The court applied the provisions of Section 12A and Regulation 30A to the facts

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## Parties

- **Judges:** SUCHITRA KANUPARTH…; Chandra Bha…; +1 more
- **Appellants:** Mukesh Sumermal…
- **Respondents:** R. D. Engineers…

## Timeline

- **2020-10-26 — Petition Ad…**: A Petition under Section 9 of Code was 'Admitted' vide Order dated 26.10.2020 in respect…
- **2020-10-26 — Settlement Ag…**: A settlement has been arrived at between the Petitioner and the Corporate Debtor…

## 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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