# In the matter of Supreme Engineering Limited

> NCLT judgment dated 2024-02-20. Citation: TCN-2024-NCLT-02515. This case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 20 Feb 2024
- **Citation:** TCN-2024-NCLT-02515
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/supreme-engineering-limited-b05c5e0e

## Summary

### Background

This case involves an application filed under Section 12A of the Insolvency and Bankruptcy Code (IBC) by the Operational Creditor (OC) through the Interim Resolution Professional (IRP), Mr. Umesh Balaram Sonkar, before the constitution of the Committee of Creditors (CoC). The application seeks to withdraw the main Company Petition 920 of 2022, based on a settlement agreement dated 31.01.2024 between the Operational Creditor and the Corporate Debtor. The suspended director of the Corporate Debtor has provided an undertaking cum personal guarantee dated 31.01.2024 to secure the debt payment. The Operational Creditor has also submitted Form FA dated 31.01.2024 for the withdrawal of the Corporate Insolvency Resolution Process (CIRP).

## Facts

Sanyo Special Steel Manufacturing India Private Limited initiated a Corporate Insolvency Resolution Process (CIRP) against Supreme Engineering Limited under Section 9 of the IBC, 2016. An application (I.A. 575/2024) was filed under Section 12A of the IBC by the Operational Creditor (Sanyo Special Steel Manufacturing India Private Limited) through the Interim Resolution Professional (IRP), Mr. Umesh Balaram Sonkar, seeking to withdraw the main Company Petition (C.P. 920/2022) before the constitution of the Committee of Creditors (CoC). This withdrawal request was based on a settlement agreement dated 31.01.2024 entered into between the Operational Creditor and the Corporate Debtor. The suspended director of Supreme Engineering Limited provided an undertaking cum

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Company Petition No. 920 of 2022 under Section 12A of …

**Ratio:** Section 12A of the IBC allows for the withdrawal of an application admitted under Section

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**Reasoning:** The court reasoned that the settlement agreement between the Operational Creditor and the

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**Interpretation:** Section 12A is interpreted to allow for flexibility in withdrawing CIRP

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**Application:** In this case, the settlement agreement between Sanyo Special Steel

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Respondents:** Supreme Engineerin…

## Timeline

- **2022-01-01 — Company Petiti…**: Company Petition 920 of…
- **2024-01-31 — Settlement Agreement &…**: Settlement agreement entered into between the Operational Creditor and the Corporate…

## 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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