# In the matter of Topsgrup Electronic Systems Limited IA-2133-2022 in C.P. (IB)-1429(MB)2020

> NCLT judgment dated 2022-08-10. Citation: TCN-2022-NCLT-01421. The case involves an application (IA-2133/2022) filed under Section 12A of the Insolvency and…

- **Court:** NCLT
- **Order date:** 10 Aug 2022
- **Citation:** TCN-2022-NCLT-01421
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/topsgrup-electronic-systems-limited-ia-2133-2022-in-cp-ib-1429mb2020-aea0f5e5

## Summary

### Background

The case involves an application (IA-2133/2022) filed under Section 12A of the Insolvency and Bankruptcy Code (I&B Code) read with NCLT Rules, 2016 and regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP). The CIRP was initiated after the Company Petition was admitted on 28.01.2022, and a public announcement was made on 31.01.2022. However, no claims were received apart from the Operational Creditor.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Topsgrup Electronic Systems Limited after the admission of a Company Petition on 28.01.2022. A public announcement was made on 31.01.2022. However, no claims were received apart from the Operational Creditor, IQ Eq Management (Netherlands) B.V. The Corporate Debtor, Topsgrup Electronic Systems Limited, possesses no tangible or realisable assets and is not a going concern. The expenses of the CIRP are being incurred by the Operational Creditor, who is the sole member of the Committee of Creditors (COC). Due to increasing costs and a low possibility of recovery, the Operational Creditor sought to withdraw from the CIRP. The Resolution Professional (RP) received an email from the Operational Creditor

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## Issues and analysis

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

**Ratio:** Section 12A of the I&B Code and regulation 30A of the Insolvency and Bankruptcy Board

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**Reasoning:** The court considered that the Operational Creditor, being the sole member of the COC, had

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**Interpretation:** Section 12A and regulation 30A are interpreted to allow for withdrawal of CIRP

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**Application:** In this case, the Operational Creditor, being the sole member of the COC,

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## Parties

- **Judges:** Manoj Kumar…; KISHORE VEMULAPALL…
- **Respondents:** Topsgrup Electroni…; IQ Eq Management…

## Timeline

- **2022-01-28 — CIRP Init…**: Company Petition admitted, and…
- **2022-01-31 — Public Annou…**: A public announcement in Form-A was…

## 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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