# 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-02155. 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-02155
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/iota-automation-pvt-ltd-ia-611che-2022-in-iba-992-2019-76519096

## Summary

### Background

The case involves an application (IA/611(CHE)/2022) filed in connection with an insolvency resolution process (IB/992/2019) under the Insolvency and Bankruptcy Code (IBC), 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated, and an Interim Resolution Professional (IRP) was appointed. The IRP filed an application under Section 12A of the IBC, 2016, seeking withdrawal of the CIRP. The Committee of Creditors (CoC), consisting of a sole member (Canara Bank), voted in favor of the withdrawal. The IRP's fees and expenses were reimbursed.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against a corporate debtor. An Interim Resolution Professional (IRP) was appointed. The IRP, Mr. Senthilkumar of IOTA Automation Pvt Ltd, filed an application (IA/611(CHE)/2022) under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, seeking withdrawal of the CIRP. The CIRP was initially ordered on 2022-03-25 in IB/992/2019. The order was received by the IRP on 2022-04-02. 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 participating as the sole financial creditor. Form-FA for withdrawal of CIRP was placed and signed by the Operational Creditor. The second CoC meeting was held on 2022-05-25. The

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## 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 Committee of Creditors

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**Reasoning:** The court considered the fact that the CoC, consisting of the sole member Canara Bank,

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP proceedings if the CoC,

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**Application:** In this case, the CoC approved the withdrawal, and the application was filed by

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## Parties

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

## Timeline

- **2022-03-25 — CIRP Ord…**: CIRP was ordered in…
- **2022-04-02 — Order Rec…**: The IRP received the…

## 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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