# In the matter of New Chennai Township Private Limited IA(IBC)-530(CHE)2022 in CP-636-IB-2017

> NCLT judgment dated 2022-05-27. Citation: TCN-2022-NCLT-02579. The case involves an application filed under Section 12A of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 27 May 2022
- **Citation:** TCN-2022-NCLT-02579
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/new-chennai-township-private-limited-iaibc-530che2022-in-cp-636-ib-2017-387784ef

## Summary

### Background

The case involves an application filed under Section 12A of the Insolvency & Bankruptcy Code, 2016, read with Regulation 30A of the IBBI (Insolvency Resolution Process of Corporate Persons) Regulations, 2016, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against New Chennai Township Private Limited. The CIRP was initiated based on an application filed under Section 7 of the IBC, 2016 by a Financial Creditor. The Interim Resolution Professional (IRP) was appointed, and a public announcement was made. The Committee of Creditors (CoC) was constituted, and the Resolution Professional's appointment was confirmed. Subsequently, the CoC decided to liquidate the Corporate Debtor, but later, a settlement proposal was submitted by the

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## Facts

New Chennai Township Private Limited was undergoing Corporate Insolvency Resolution Process (CIRP) based on an application under Section 7 of the Insolvency & Bankruptcy Code, 2016. L.K. Sivaramakrishnan was the Resolution Professional. Phoenix ARC Limited submitted a claim of Rs.532,17,69,780. The Committee of Creditors (CoC) was formed, with Phoenix ARC Pvt. Ltd. holding 40.79% voting share and Edelweiss Asset Reconstruction Company Ltd. holding 40.46%. The CoC initially decided to liquidate the Corporate Debtor. Later, Gorrepati R Reddy, the Guarantor of the Corporate Debtor, submitted a settlement proposal under Section 12A of IBC, 2016, and deposited Rs.38,01,03,910 in an Escrow Account. The CoC approved the withdrawal of the CIRP with a voting share of

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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 Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of

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**Reasoning:** The Tribunal considered the submissions made by the Learned Counsel for the Applicant,

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**Interpretation:** Section 12A provides a mechanism for the withdrawal of CIRP, allowing for

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**Application:** In this case, the CoC's approval with 92.55% voting share satisfied the

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## Parties

- **Judges:** S. Ramath…; B. Anil…
- **Appellants:** L.K. Sivaramakrish…
- **Respondents:** New Chennai…
- **Advocates:** V.V. Shiv…; B. Ramana…; +1 more

## Timeline

- **2017-01-01 — CP/636/IB/201…**: The initial Corporate Insolvency Resolution…
- **2019-07-05 — CIRP Init…**: The Tribunal initiated Corporate Insolvency Resolution Process (CIRP) 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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