# In the matter of Tapan Kumar Agarwala & Anr. Vs. Khaitan Rice Mill Pvt. Ltd. & Anr. Company Appeal (AT) (Insolvency) No. 641 of 2022

> NCLAT judgment dated 2022-08-18. Citation: TCN-2022-NCLAT-00282. The case involves an appeal against an order dated 20.05.2022 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 18 Aug 2022
- **Citation:** TCN-2022-NCLAT-00282
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/tapan-kumar-agarwala-anr-vs-khaitan-rice-mill-pvt-ltd-anr-company-appeal-aa8f3567

## Summary

### Background

The case involves an appeal against an order dated 20.05.2022 passed by the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench-1, Kolkataby, which admitted an application filed by the Respondent – Operational Creditor under Section 9 of the Insolvency and Bankruptcy Code (IBC). The application was filed for claiming a debt of Rs. 25,77,322/-. The Appellant's counsel stated that they could not appear before the Adjudicating Authority for several days and that there was correspondence regarding settlement of accounts and admission of the debt. The Appellant expressed readiness to submit the entire claimed amount. The court initially directed that the IRP should not constitute the CoC and allowed the Corporate Debtor to continue as a going concern.

## Facts

Tapan Kumar Agarwala & Anr. filed an appeal against Khaitan Rice Mill Pvt. Ltd. & Anr. concerning an order dated 20.05.2022 by the Adjudicating Authority, Kolkata, which admitted an application under Section 9 of the IBC filed by Khaitan Rice Mill for a debt of Rs. 25,77,322/-. The appellant's counsel cited correspondence regarding settlement and readiness to pay the debt. The court initially directed that the IRP not constitute the CoC and allowed the Corporate Debtor to continue as a going concern. Subsequently, the Operational Creditor was permitted to withdraw the application under Section 9 after the entire debt was paid. The appellant was directed to pay an additional Rs.1.5 Lakh to the IRP towards expenses.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order admitting the application under Section 9 of the IBC …

**Ratio:** When the entire debt claimed by the Operational Creditor has been paid, the basis for the

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**Reasoning:** The court reasoned that since the entire debt had been paid, the purpose of the Section 9

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**Interpretation:** This interprets Section 9 of the IBC to allow for the withdrawal of an

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**Application:** In this case, the court applied this principle by allowing the withdrawal of

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Tapan Kumar…
- **Respondents:** Khaitan Rice Mill…

## Timeline

- **2022-05-20 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Kolkata Bench-1, Kolkataby…
- **2022-06-03 — First He…**: Appeal was first heard, and the court…

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