# In the matter of Surya Irrigation Pvt. Ltd.

> NCLT judgment dated 2023-10-31. Citation: TCN-2023-NCLT-00962. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 31 Oct 2023
- **Citation:** TCN-2023-NCLT-00962
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/surya-irrigation-pvt-ltd-beba8235

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated against M/s Surya Irrigation Pvt. Ltd. The CIRP was initiated based on Section 9 of the IBC, 2016. The application for withdrawal was filed under Section 12A of the IBC, 2016 read with Regulation 30A of the CIRP Regulations, 2016. The Operational Creditor and Corporate Debtor had amicably settled their disputes by entering into a settlement deed dated 29.04.2023, wherein the Operational Creditor received an amount of Rs. 5,00,000. Later, a dispute arose regarding the submission of a defective Form FA.

## Facts

Adhunik Niryat Ispat Ltd. filed an application as an Operational Creditor against M/s Surya Irrigation Pvt. Ltd., the Corporate Debtor, under Section 9 of the IBC, 2016, leading to the initiation of CIRP. Subsequently, the Operational Creditor and the Corporate Debtor entered into a settlement agreement dated 29.04.2023, where the Operational Creditor received Rs. 5,00,000. An application was filed under Section 12A of the IBC, 2016, read with Regulation 30A of the CIRP Regulations, 2016, seeking withdrawal of the CIRP. A dispute arose regarding the submission of a defective Form FA, and a Revised Form FA dated 20.10.2023 was submitted. The initial order initiating CIRP was dated 05.12.2022.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC, 2016, should be …

**Ratio:** Section 12A of the IBC, 2016, allows for the withdrawal of CIRP with the approval of 90%

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**Reasoning:** The court considered the settlement agreement dated 29.04.2023 between the Operational

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**Interpretation:** Section 12A and Regulation 30A are interpreted to allow for the withdrawal of

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**Application:** In this case, the settlement agreement and the application for withdrawal under

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Adhunik Niryat…
- **Respondents:** M/s Surya…

## Timeline

- **2019-09-01 — CP No. (IB)- 316/9/JPR/2…**: Filing of CP No. (IB)-…
- **2022-12-05 — Order Da…**: Order initiating CIRP of M/s…

## 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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