# In the matter of Soundararaja Mills Ltd. IA-1291-(CHE)-2022 in CP-(IB)87-CB-2022

> NCLT judgment dated 2022-11-28. Citation: TCN-2022-NCLT-00303. The case involves an Interlocutory Application (IA/1291(CHE)/2022) filed by the Interim…

- **Court:** NCLT
- **Order date:** 28 Nov 2022
- **Citation:** TCN-2022-NCLT-00303
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/soundararaja-mills-ltd-ia-1291-che-2022-in-cp-ib87-cb-2022-57cfaf08

## Summary

### Background

The case involves an Interlocutory Application (IA/1291(CHE)/2022) filed by the Interim Resolution Professional (IRP) seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Soundararaja Mills Ltd. The CIRP was initially ordered by the Tribunal in CP/87/2022 on 26.08.2022, and the IRP was appointed. The order was communicated to the IRP on 15.10.2022, and a public announcement was made on 17.10.2022.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against M/s. Soundararaja Mills Ltd. The CIRP was ordered by the Tribunal in CP/87/2022 on 26.08.2022, and an Interim Resolution Professional (IRP) was appointed. The order was communicated to the IRP on 15.10.2022, and a public announcement was made on 17.10.2022. The IRP subsequently filed an application (IA/1291(CHE)/2022) seeking withdrawal of the CIRP under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016. The IRP stated that no claims were received after the publication of Form-A (dated 02.11.2022). The Operational Creditor, who initiated the CIRP, confirmed that the Corporate Debtor had entered into a settlement with the Applicant. The Operational Creditor also stated that Rs. Two lakh

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## Issues and analysis

### Issue 1: Whether the Interlocutory Application for withdrawal of the Captioned Petition should be allowed …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, allows for the withdrawal

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**Reasoning:** The Tribunal considered the fact that the matter was settled between the parties before

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**Interpretation:** Section 12A provides a mechanism for withdrawal of CIRP if certain conditions

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Ramalingam…; Shri. Samee…
- **Respondents:** M/s.Soundararaja…

## Timeline

- **2022-08-26 — CIRP Ord…**: The Tribunal ordered the CIRP against M/s.…
- **2022-10-15 — Order Communicated to…**: The order dated 26.08.2022…

## 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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