# In the matter of IOTA Automation Pvt. Ltd. IA-611(CHE)-2022 in IBA-992-2019

> NCLT judgment dated 2022-06-20. Citation: TCN-2022-NCLT-02162. The case involves an application (IA/611(CHE)/2022) filed in connection with an insolvency…

- **Court:** NCLT
- **Order date:** 20 Jun 2022
- **Citation:** TCN-2022-NCLT-02162
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/iota-automation-pvt-ltd-ia-611che-2022-in-iba-992-2019-756743ec

## Summary

### Background

The case involves an application (IA/611(CHE)/2022) filed in connection with an insolvency resolution process (IB/992/2019). The Corporate Insolvency Resolution Process (CIRP) was initiated on 2022-03-25. The applicant was appointed as the Interim Resolution Professional (IRP). The application was filed under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, by the IRP, Mr. Senthilkumar of IOTA Automation Pvt Ltd, seeking withdrawal of the CIRP. The first meeting of the Committee of Creditors (CoC) was held on 2022-04-29, with Canara Bank, the sole financial creditor, participating.

## Facts

The Interim Resolution Professional (IRP) of IOTA Automation P Ltd filed an application (IA/611(CHE)/2022) under Section 12A of the IBC, 2016, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against the corporate debtor. The CIRP was ordered on 2022-03-25. The IRP stated that the order was received on 2022-04-02, and Form A was published on 2022-04-05 and 2022-04-06. The first meeting of the Committee of Creditors (CoC) was held on 2022-04-29, with Canara Bank, the sole financial creditor, participating. The minutes of the second CoC meeting held on 2022-05-25, along with the voting results on the withdrawal resolution, were placed on record. The sole member of the CoC voted in favor of the withdrawal under section 12A. The IRP's fees

…

## Issues and analysis

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

**Ratio:** Section 12A of the IBC, 2016, allows for the withdrawal of CIRP with the approval of 90%

…

**Reasoning:** The court considered the minutes of the CoC meetings and the voting results, noting that

…

**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if a significant majority

…

**Application:** In this case, the sole member of the CoC (Canara Bank) voted in favor of the

…

## Parties

- **Judges:** S. Ramath…; SAMEER…
- **Appellants:** IRP of IOTA…
- **Respondents:** IOTA Automation…; Fomra Elect…

## Timeline

- **2022-03-25 — CIRP Ord…**: Corporate Insolvency Resolution…
- **2019-01-01 — Petition…**: IBA/992/…

## 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)

---

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/iota-automation-pvt-ltd-ia-611che-2022-in-iba-992-2019-756743ec