# In the matter of Power Mech Projects Limited

> NCLT judgment dated 2025-02-04. Citation: TCN-2025-NCLT-00534. The case involves an application filed under Section 12A of the IBC Code seeking withdrawal of…

- **Court:** NCLT
- **Order date:** 4 Feb 2025
- **Citation:** TCN-2025-NCLT-00534
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/power-mech-projects-limited-18a2e242

## Summary

### Background

The case involves an application filed under Section 12A of the IBC Code seeking withdrawal of the CIRP process against the Corporate Debtor, M/s. Power Mech Projects Ltd. The main company petition was admitted by the Tribunal on 29.01.2025, and an IRP was appointed. The IRP stated that the parties have come into a settlement.

## Facts

M/s. Largess Engineering, the Operational Creditor, initiated CIRP against M/s. Power Mech Projects Ltd, the Corporate Debtor. The main company petition was admitted on 2025-01-29. An IRP was appointed. Subsequently, an application was filed under Section 12A of the IBC Code to withdraw the CIRP process, citing a settlement between the parties. The Tribunal considered the application, noting compliance with Regulation 30A of IBBI. The relevance of the settlement is that it allows for the resolution of the insolvency proceedings outside of the formal CIRP process, potentially leading to a more amicable and efficient outcome for all parties involved.

## Issues and analysis

### Issue 1: Whether the Tribunal has the power to allow the withdrawal of a CIRP application under Section 12A …

**Ratio:** Section 12A of the IBC Code, read with Regulation 30A of the IBBI Regulations, grants the

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**Reasoning:** The Tribunal reasoned that Section 12A and Regulation 30A explicitly provide the

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**Interpretation:** Section 12A is interpreted as a mechanism to encourage settlements and amicable

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**Application:** In this case, the Tribunal applied Section 12A to allow the withdrawal of the

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## Parties

- **Judges:** SH. RAJEEV…; SH. CHARAN…
- **Respondents:** M/s. Power Mech…; M/s. Largess…

## Timeline

- **2025-01-29 — Admission of Company…**: The main company petition was…
- **2025-02-04 — Order for Wit…**: The Tribunal allowed the application…

## 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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