# In the matter of Techno Auto Components (India) Pvt. Ltd. IA-2451-2022 in IB-665-ND-2021

> NCLT judgment dated 2022-05-27. Citation: TCN-2022-NCLT-02582. The case involves an application (IA/2451/2022) filed for the withdrawal of a Corporate…

- **Court:** NCLT
- **Order date:** 27 May 2022
- **Citation:** TCN-2022-NCLT-02582
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/techno-auto-components-india-pvt-ltd-ia-2451-2022-in-ib-665-nd-2021-07d6600c

## Summary

### Background

The case involves an application (IA/2451/2022) filed for the withdrawal of a Corporate Insolvency Resolution Process (CIRP) initiated under Section 9 of the Insolvency and Bankruptcy Code (IBC). The CIRP was initiated on 2022-05-11. The Interim Resolution Professional (IRP) received Form FA on 2022-05-20 and the order on 2022-05-12, after which publication was made.

## Facts

Delhi Industrial Corporation filed an application for the initiation of CIRP against Techno Auto Componants (India) Pvt. Ltd. The CIRP was initiated on 2022-05-11. The IRP received Form FA on 2022-05-20 and the order on 2022-05-12, after which publication was made. The IRP received claims from one Financial Creditor amounting to Rs. 8.93 crores and ten Operational Creditors amounting to Rs. 22 crores. The applicant then filed IA/2451/2022 seeking withdrawal of the CIRP due to a settlement. The court considered the settlement and allowed the withdrawal subject to the payment of Rs. 1 lakh as costs, to be shared equally by the Operational Creditor and the Corporate Debtor, and deposited in the Prime Minister Relief Fund. The relevance of these facts lies in demonstrating

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) should …

**Ratio:** The legal principle applied is that the court has the discretion to allow the withdrawal

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**Reasoning:** The court reasoned that considering the settlement arrived at after the initiation of the

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**Interpretation:** The interpretation of the law is that while the IBC provides a framework for

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**Application:** In this specific case, the ratio and reasoning were applied by allowing the

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; HEMANT KUMAR…
- **Appellants:** Delhi Industrial…
- **Respondents:** Techno Auto…
- **Advocates:** Rajiv S…; Eknoor…; +1 more

## Timeline

- **2022-05-11 — CIRP Init…**: The Corporate Insolvency…
- **2022-05-12 — Order Receive…**: The Interim Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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