# In the matter of V-Tech Elastomers Private Limited IA 57-2018 in C.P. (IB)-1211(MB)-2017

> NCLT judgment dated 2019-02-19. Citation: TCN-2019-NCLT-04769. The case involves an application under Section 12A of the Insolvency & Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 19 Feb 2019
- **Citation:** TCN-2019-NCLT-04769
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/v-tech-elastomers-private-limited-ia-57-2018-in-cp-ib-1211mb-2017-0771b3da

## Summary

### Background

The case involves an application under Section 12A of the Insolvency & Bankruptcy Code, 2016, seeking withdrawal of the corporate insolvency resolution process (CIRP) initiated against V-Tech Elastomers Private Limited. The application was filed after a settlement was reached between Bell Finvest India Limited (Financial Creditor) and V-Tech Elastomers Private Limited (Corporate Debtor). The Resolution Professional, Devendra Jain, filed the application based on the settlement. The CIRP was initially triggered by an order passed under Section 7 of the Insolvency Code on 22.08.2017.

## Facts

Bell Finvest India Limited initiated CIRP against V-Tech Elastomers Private Limited under Section 7 of the Insolvency & Bankruptcy Code. The CIRP was admitted on 22.08.2017. The financial debt claimed was Rs. 5,72,000 with an interest of Rs. 6,31,624 as of the petition date. Subsequently, a settlement was reached between Bell Finvest India Limited and V-Tech Elastomers Private Limited, where the Corporate Debtor agreed to pay Rs. 5,32,350. The Committee of Creditors (CoC) approved the settlement on 26.12.2018. Devendra Jain, the Resolution Professional, filed an application under Section 12A seeking withdrawal of the CIRP. An EOI was published on 12.04.2018, but no prospective resolution applicant showed interest. The Resolution Professional received the entire

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## Issues and analysis

### Issue 1: Whether the application under Section 12A of the Insolvency & Bankruptcy Code for withdrawal of …

**Ratio:** The ratio is that Section 12A of the IBC allows for withdrawal of CIRP based on

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**Reasoning:** The court reasoned that the settlement between the parties, supported by the CoC, and the

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP applications when a

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**Application:** In this case, the settlement between Bell Finvest India Limited and V-Tech

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Devendra…
- **Respondents:** V-Tech Elastomers…; Vinit J.…
- **Advocates:** Vikramjoti…; Amey Ha…; +2 more

## Timeline

- **2017-08-22 — Order under S…**: Order was passed u/s. 7 of the Insolvency…
- **2018-04-12 — EOI Publi…**: EOI was published in Free Press…

## 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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