# 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-02173. The case involves an application (IA/611(CHE)/2022) in relation to a Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 20 Jun 2022
- **Citation:** TCN-2022-NCLT-02173
- **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-cf821eab

## Summary

### Background

The case involves an application (IA/611(CHE)/2022) in relation to a Corporate Insolvency Resolution Process (CIRP) initiated under IBA/992/2019. The IRP of IOTA Automation Pvt Ltd filed the application under Section 12A of the IBC, 2016, seeking withdrawal of the CIRP. The CIRP was initially ordered on 25.03.2022, and the applicant was appointed as the IRP. The first meeting of the Committee of Creditors (CoC) was held on 29.04.2022, with Canara Bank, the sole financial creditor, participating. Form-FA, for withdrawal of CIRP, was placed and signed by the Operational Creditor. The second CoC meeting was held on 25.05.2022, where the withdrawal resolution was discussed.

## Facts

The IRP of IOTA Automation Pvt Ltd initiated an application (IA/611(CHE)/2022) under Section 12A of the IBC, 2016, to withdraw the CIRP which was initially ordered on 25.03.2022. The IRP stated that the order was received on 02.04.2022, and Form A was published on 05.04.2022 and 06.04.2022. The first CoC meeting was held on 29.04.2022, where Canara Bank, the sole financial creditor, participated. Form-FA for withdrawal was signed by the Operational Creditor. A second CoC meeting was held on 25.05.2022, where the CoC voted in favor of the withdrawal under Section 12A. The IRP's fees and expenses were reimbursed. The relevance of these facts is that they demonstrate compliance with the procedural requirements for withdrawing a CIRP under Section 12A of the IBC, 2016, and

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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, 2016, allows for the withdrawal of CIRP with the approval of 90%

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**Reasoning:** The court reasoned that the sole member of the CoC voted in favor of the withdrawal under

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP if the CoC approves it

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

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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 IB/992/2019, and…
- **2022-04-02 — Order Rec…**: The IRP stated that the order…

## 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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