# MechFab Engineering Industries Pvt. Ltd. (OC) vs. Bholenath Traders Private Limited (CD)

> NCLT judgment dated 2026-05-12. Citation: TCN-2026-NCLT-00511. MechFab Engineering Industries Pvt. Ltd. (Operational Creditor) initiated a Corporate…

- **Court:** NCLT
- **Order date:** 12 May 2026
- **Citation:** TCN-2026-NCLT-00511
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-guwahati/mechfab-engineering-industries-pvt-ltd-oc-vs-bholenath-traders-private-limited-d491f59a

## Summary

### Background

MechFab Engineering Industries Pvt. Ltd. (Operational Creditor) initiated a Corporate Insolvency Resolution Process (CIRP) against Bholenath Traders Private Limited (Corporate Debtor) under Section 9 of the IBC, 2016. Subsequently, the Resolution Professional (RP), Mr. Sandeep Khaitan, filed an application (IA(IBC)/85/GB/2026) under Section 12A of the IBC, 2016, read with Regulation 30A of the IBBI Regulations, 2016, seeking to withdraw the main Company Petition (CP(IB)/24/GB/2025). This application was based on a settlement reached between the parties, where the Corporate Debtor had deposited the agreed amount.

## Facts

MechFab Engineering Industries Pvt. Ltd. (OC) initiated a CIRP against Bholenath Traders Private Limited (CD) under Section 9 of IBC, 2016.

Ld. RP filed an application (IA(IBC)/85/GB/2026) under Section 12A of the IBC, 2016, read with Regulation 30A of the IBBI Regulations, 2016.

The application sought the withdrawal of the main Company Petition (CP(IB)/24/GB/2025).

The reason for the withdrawal application was that the account had been settled between the parties.

The application was filed in pursuance of an order passed by the Hon'ble NCLAT.

The Respondent, Bholenath Traders Private Limited (CD), deposited the amount as per the settlement agreement.

The Applicant for IA(IBC)/85/GB/2026 is Mr. Sandeep Khaitan, RP.

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## Issues and analysis

### Issue 1

**Ratio:** An application for withdrawal of CIRP under Section 12A of the IBC, 2016, read with

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**Reasoning:** The Tribunal considered the application filed by the Resolution Professional, the fact

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**Interpretation:** Section 12A of the IBC and Regulation 30A of the IBBI Regulations provide a

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**Application:** In the present case, as the Corporate Debtor, Bholenath Traders Private

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## Parties

- **Judges:** Rammurti Ku…; Yogendra Kumar…
- **Appellants:** MechFab Engineerin…; Sandeep K…; +1 more
- **Respondents:** Bholenath Traders…; Bholenath Traders…
- **Advocates:** C. Sh…; N. Go…; +2 more

## Timeline

- **2026-05-12 — Hearing…**: Order Sheet of the…
- **N/A — Application for…**: Ld. RP filed the Application IA(IBC)/85/GB/2026 under Section 12A of the IBC, 2016 read…

## 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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