# In the matter of Alba Industries Limited IA(IBC)-68-CHE-2021 in IBA-43-2020

> NCLT judgment dated 2022-03-16. Citation: TCN-2022-NCLT-03714. The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 16 Mar 2022
- **Citation:** TCN-2022-NCLT-03714
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alba-industries-limited-iaibc-68-che-2021-in-iba-43-2020-5a940d7a

## Summary

### Background

The case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking the withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. ALBA Industries Limited. The CIRP was initially triggered by an application filed by the Financial Creditor, The Federal Bank Limited, under Section 7 of the IBC, 2016. The Tribunal admitted the petition and initiated CIRP on 2021-04-27, appointing an Interim Resolution Professional (IRP).

## Facts

The Financial Creditor, The Federal Bank Limited, initiated CIRP against the Corporate Debtor, M/s. ALBA Industries Limited, under Section 7 of the IBC, 2016. The CIRP was initiated on 2021-04-27. The Federal Bank Limited submitted a claim of Rs. 22,46,44,843. Subsequently, IndusInd Bank Limited submitted a claim of Rs. 23,19,55,602. The CoC was constituted, and the IRP was appointed as the RP. An invitation for Expression of Interest (Eol) was published, but no expression was received. The CoC decided not to issue Eol for the second time due to ongoing settlement talks. A Memorandum of Compromise was entered into on 2022-11-13, with extracts executed on 2022-01-13. The settlement involved the Corporate Debtor paying amounts to the Financial Creditors. The suspended

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## Issues and analysis

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

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, read with Regulation 30A of the

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**Reasoning:** The Tribunal considered the submissions made by the Learned Counsel for the Applicant/RP,

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**Interpretation:** Section 12A provides a mechanism for the withdrawal of CIRP if a settlement is

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**Application:** In this case, the Corporate Debtor and its Financial Creditors reached a

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## Parties

- **Judges:** (Retd.) S.…; Anil Ku…
- **Appellants:** Nagalingam…
- **Respondents:** M/s. ALBA…; M/s. The Federal…

## Timeline

- **2021-04-27 — CIRP Init…**: CIRP initiated against the Corporate Debtor, M/s. ALBA Industries Limited, by the…
- **2022-01-13 — Memorandum of S…**: Memorandum of Settlement executed between the Corporate Debtor and its Financial…

## 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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