# In the matter of Eswari Exports Private Limited IA No. 228-2022 in CP (IB) No. 34-9-HDB-2021

> NCLT judgment dated 2022-03-16. Citation: TCN-2022-NCLT-03723. The case involves an Interlocutory Application (IA No. 228/2022) filed in CP (IB)…

- **Court:** NCLT
- **Order date:** 16 Mar 2022
- **Citation:** TCN-2022-NCLT-03723
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/eswari-exports-private-limited-ia-no-228-2022-in-cp-ib-no-34-9-hdb-2021-70d09e58

## Summary

### Background

The case involves an Interlocutory Application (IA No. 228/2022) filed in CP (IB) No.34/9/HDB/2021 by the Interim Resolution Professional (IRP) under section 12A of the Insolvency and Bankruptcy Code, 2016. The application was filed on behalf of the Operational Creditor, seeking to allow the application and withdraw the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Eswari Exports Private Limited. The CIRP was initiated based on an application by Turk Eximbank, which was admitted on 04.02.2022. The IRP issued a public announcement on 05.03.2022. The Corporate Debtor and Operational Creditor reached a settlement, and the Operational Creditor submitted Form-FA for withdrawal of CIRP.

## Facts

Turk Eximbank, an Operational Creditor, filed CP (IB) No.34/9/HDB/2021 against Eswari Exports Private Limited, the Corporate Debtor. The Adjudicating Authority admitted the application on 04.02.2022, initiating CIRP. Dr. Ahalada Rao Vummenthala was appointed as the Interim Resolution Professional (IRP). The IRP issued a public announcement on 05.03.2022. Subsequently, the Corporate Debtor and Operational Creditor reached a settlement of USD 140,000 against a claim of USD 155,520. The Managing Director of the Corporate Debtor, Mr. Ravi Katragadda, paid the settlement amount from personal sources. The Operational Creditor submitted Form-FA for withdrawal of CIRP on 11.03.2022. No claims were submitted by any other creditors, and the Committee of Creditors was not

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## Issues and analysis

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

**Ratio:** Section 12A of the IB Code allows for the withdrawal of CIRP with the approval of the

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**Reasoning:** The Adjudicating Authority considered the settlement between the Corporate Debtor and

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**Interpretation:** Section 12A provides a mechanism for parties to settle their disputes and

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**Application:** In this case, the Corporate Debtor and Operational Creditor reached a

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## Parties

- **Judges:** Bhaskara Pantula…; Veera Brahma Rao…
- **Appellants:** Turk Exi…
- **Respondents:** Eswari Exports…

## Timeline

- **2021-01-01 — Filing of CP (IB)…**: CP (IB) No.34/9/HDB/2021 filed by Turk…
- **2022-02-04 — Admission of CP (IB)…**: The Adjudicating Authority admitted the application and initiated CIRP against Eswari…

## 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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