# In the matter of Milani Techno Engineering Ltd.

> NCLT judgment dated 2023-11-21. Citation: TCN-2023-NCLT-00687. The case involves an application (IA No. 408/2023) filed by the Resolution Professional (RP)…

- **Court:** NCLT
- **Order date:** 21 Nov 2023
- **Citation:** TCN-2023-NCLT-00687
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/milani-techno-engineering-ltd-378878f9

## Summary

### Background

The case involves an application (IA No. 408/2023) filed by the Resolution Professional (RP) under Section 12A of the Insolvency and Bankruptcy Code (IBC) for the withdrawal of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Milani Techno Engineering Limited. The application is based on the resolution passed by the Committee of Creditors (CoC) in its 5th meeting held on August 14, 2023, approving the withdrawal of the CIRP due to the non-traceability of the Corporate Debtor and the absence of tangible assets.

## Facts

The Resolution Professional (RP) filed an application under Section 12A of the Insolvency and Bankruptcy Code, 2016 (IBC) for the withdrawal of the Corporate Insolvency Resolution Process (CIRP) against Milani Techno Engineering Limited. The application was supported by a resolution passed by the Committee of Creditors (CoC) with 100% voting in favor of the withdrawal. The CoC's decision was based on the non-traceability of the Corporate Debtor and the absence of tangible assets. The RP also stated that there are no assets and cash reserves available with the Corporate Debtor, and he is willing to forgo the CIRP cost and fees. The 5th CoC meeting was held on August 14, 2023. There were 18 creditors in class who voted in favor of the resolution.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP under Section 12A of the IBC should be allowed given …

**Ratio:** Section 12A of the IBC, read with Regulation 30A of the IBBI (Insolvency Resolution

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**Reasoning:** The court considered the resolution passed by the CoC with 100% voting in favor of

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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 CoC approved the withdrawal of CIRP due to the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Govind Ram…
- **Respondents:** Milani Techno…

## Timeline

- **2023-08-14 — 5th CoC M…**: The 5th meeting of the Committee of Creditors (CoC) was held, wherein a resolution was…
- **2023-11-21 — Order Da…**: The court allowed the application for withdrawal of the CIRP initiated against 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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