# In the matter of Alliance Embroidery Machine Private Limited

> NCLT judgment dated 2024-12-17. Citation: TCN-2024-NCLT-00046. The case involves an application filed under Section 12(A) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 17 Dec 2024
- **Citation:** TCN-2024-NCLT-00046
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alliance-embroidery-machine-private-limited-010358af

## Summary

### Background

The case involves an application filed under Section 12(A) of the Insolvency and Bankruptcy Code (IBC) seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against Alliance Embroidery Machine Pvt Ltd. The CIRP was initiated vide order dated 10.04.2024. The Resolution Professional (RP) received Form FA from the original Applicant/Operational Creditor, indicating a settlement. The Committee of Creditors (CoC) approved the withdrawal with 94.37% voting share.

## Facts

On 10.04.2024, CIRP was initiated against Alliance Embroidery Machine Pvt. Ltd. The applicant was appointed as IRP and later confirmed as RP on 10.05.2024. During the CIRP, the RP received Form FA dated 03.09.2024 from the original Applicant/Operational Creditor, indicating a settlement. A settlement agreement dated 26.07.2024 was also attached. The entire settlement amount was received by the original Applicant/Operational Creditor from the suspended management of the Corporate Debtor. The RP received all CIRP costs and dues. On 09.09.2024, the CoC approved the withdrawal of CIRP with 94.37% voting share. The applicant filed an affidavit on 17.12.2024 regarding signature requirements in China. The settlement was arrived at between the original Applicant/Operational

…

## 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 if the CoC approves it with a

…

**Reasoning:** The court reasoned that the original Applicant/Operational Creditor and the suspended

…

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

…

**Application:** In this case, the settlement between the original Applicant/Operational

…

## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Nanjing Maohj…
- **Respondents:** Alliance Embroider…
- **Advocates:** Dheeraj…

## Timeline

- **2024-04-10 — CIRP Init…**: Order passed admitting Alliance…
- **2024-05-10 — RP Appoin…**: Applicant confirmed/appointed as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/alliance-embroidery-machine-private-limited-010358af