# In the matter of Krishna Garg & Anr. Vs. Pioneer Fabricators Pvt. Ltd. CA (AT) (Ins) Nos. 92 of 2021

> NCLAT judgment dated 2021-02-12. Citation: TCN-2021-NCLAT-00366. The Appellants, who are financial creditors, sought the revival of the Corporate Insolvency…

- **Court:** NCLAT
- **Order date:** 12 Feb 2021
- **Citation:** TCN-2021-NCLAT-00366
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/krishna-garg-anr-vs-pioneer-fabricators-pvt-ltd-ca-74c53332

## Summary

### Background

The Appellants, who are financial creditors, sought the revival of the Corporate Insolvency Resolution Process (CIRP) against Pioneer Fabricators Pvt. Ltd. The Adjudicating Authority (National Company Law Tribunal), New Delhi Court-III, rejected their application based on an order dated December 7, 2020. The initial CIRP against the Corporate Debtor was initiated on June 12, 2019, but was later recalled due to the withdrawal of the CIRP, based on a settlement between the parties. The Appellants were unable to revive the CIRP because it had already been terminated, and the moratorium had been withdrawn.

## Facts

The Appellants, financial creditors, initiated Corporate Insolvency Resolution Process (CIRP) against Pioneer Fabricators Pvt. Ltd. on June 12, 2019. This was followed by the appointment of an Interim Resolution Professional (IRP) and the imposition of a moratorium. A settlement was reached between the parties, leading to the Appellants receiving post-dated cheques. Consequently, the CIRP was withdrawn, relying on the Supreme Court's judgment in 'Swiss Ribbons Pvt. Ltd. & Anr. V. Union of India & Ors.- 2019 SCC OnLine SC 73'. However, the settlement terms were not formally recorded or incorporated into the Adjudicating Authority's order. When the Corporate Debtor allegedly defaulted on the post-dated cheques, the Appellants sought to revive the CIRP. The

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## Issues and analysis

### Issue 1: Whether the Appellants can revive the Corporate Insolvency Resolution Process (CIRP) after it has …

**Ratio:** The legal principle is that once a CIRP is terminated based on a settlement, its revival

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**Reasoning:** The court reasoned that since the settlement terms were not formally incorporated into

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**Interpretation:** The interpretation is that the termination of CIRP based on a settlement

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**Application:** In this specific case, because the settlement terms were not formally

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## Parties

- **Judges:** Bansi Lal…; Ashok Kumar…; +1 more
- **Appellants:** Krishna Garg &…
- **Respondents:** Pioneer Fabricator…

## Timeline

- **2020-12-07 — Order by Adjudicating…**: The Adjudicating Authority rejected the…
- **2019-06-12 — CIRP Init…**: CIRP initiated against…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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