# In the matter of Viraaj Projects (India) Pvt. Ltd. IA-914-2023 in C.P. (IB)-3230(MB)2019

> NCLT judgment dated 2023-03-15. Citation: TCN-2023-NCLT-04249. The case involves an application (IA-914/2023) filed under Section 12A of the Insolvency and…

- **Court:** NCLT
- **Order date:** 15 Mar 2023
- **Citation:** TCN-2023-NCLT-04249
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/viraaj-projects-india-pvt-ltd-ia-914-2023-in-cp-ib-3230mb2019-6c2bc4b0

## Summary

### Background

The case involves an application (IA-914/2023) filed under Section 12A of the Insolvency and Bankruptcy Code (IBC) for the withdrawal of Corporate Insolvency Resolution Process (CIRP) proceedings and dismissal of the main Company Petition. The operational creditor had initiated CIRP against the corporate debtor under Section 9 of the IBC for a claim of Rs. 38,95,038, which was admitted on 17.02.2023. An Interim Resolution Professional (IRP) was appointed, and a moratorium was declared. The promoter of the corporate debtor filed an appeal before the NCLAT, which granted a stay on the formation of the Committee of Creditors (CoC).

## Facts

The Operational Creditor initiated CIRP against Robo Silicon Pvt. Ltd. (Corporate Debtor) under Section 9 of the IBC for a claim of Rs. 38,95,038. The petition was admitted on 17.02.2023, an IRP was appointed, and a moratorium was declared. The Corporate Debtor's promoter appealed to NCLAT, which stayed the formation of the CoC. The Operational Creditor and Corporate Debtor entered into a settlement agreement dated 06.03.2023, where the Corporate Debtor agreed to pay Rs. 62,00,000 to the Operational Creditor. The Applicant then filed IA-914/2023 under Section 12A of the IBC for withdrawal of CIRP. The IRP received Rs. 4,50,000 (after TDS of Rs. 50,000) from the Operational Creditor. The application was filed with Form FA.

## Issues and analysis

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

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

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

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**Interpretation:** Section 12A provides a mechanism for parties to settle their disputes and

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**Application:** The court applied Section 12A to the facts of the case, where a settlement was

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Respondents:** Robo Silicon Pvt…

## Timeline

- **2023-02-17 — CIRP Admi…**: The petition filed under Section 9 of the IBC was admitted by the Tribunal. IRP was…
- **2023-02-28 — NCLAT Or…**: The Hon'ble NCLAT granted stay on formation…

## 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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