# In the matter of A & A International Trading Pvt. Ltd. CP-500-(IB)-CB-2017

> NCLT judgment dated 2017-07-18. Citation: TCN-2017-NCLT-00734. The case involves a petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 by…

- **Court:** NCLT
- **Order date:** 18 Jul 2017
- **Citation:** TCN-2017-NCLT-00734
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/a-a-international-trading-pvt-ltd-cp-500-ib-cb-2017-b7fb6d91

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 by Phoenix Global DMCC against A&A International Trading Pvt Ltd. The Corporate Insolvency Process was commenced, and a moratorium was declared. However, the Operational Creditor did not propose an Insolvency Resolution Professional (IRP), and a reference was made to IBBI for recommending an IRP. The petitioner filed a memo seeking recall of the order dated 16.06.2017.

## Facts

Phoenix Global DMCC initiated Corporate Insolvency Resolution Process (CIRP) against A&A International Trading Pvt Ltd under Section 9 of the Insolvency & Bankruptcy Code, 2016. The NCLT admitted the petition on 2017-06-16, commencing the CIRP and declaring a moratorium. However, the Operational Creditor did not propose an Insolvency Resolution Professional (IRP). A reference was made to IBBI for recommending the name of IRP. Subsequently, the Corporate Debtor paid the Operational Creditor US $250,000 on 2017-06-23, settling the outstanding debts. The Operational Creditor admitted to the settlement. The Corporate Debtor filed an affidavit stating that it had not defaulted in relation to the debts of any other creditors. The petitioner then sought to withdraw

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## Issues and analysis

### Issue 1: Whether the order dated 2017-06-16 commencing the Corporate Insolvency Resolution Process should be …

**Ratio:** The Tribunal has the inherent power to recall its orders under Rule 11 of the NCLT Rules,

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**Reasoning:** The court reasoned that the Corporate Debtor had paid the outstanding debts to the

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**Interpretation:** Rule 11 of the NCLT Rules, 2016 grants the tribunal inherent powers to make

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**Application:** The court applied the ratio by recalling the order dated 2017-06-16 because the

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## Parties

- **Judges:** Ch. Mohd Sharief…; S. VIJAYARA…
- **Appellants:** PHOENIX GLOBAL…
- **Respondents:** A&A INTERNATIONAL…

## Timeline

- **2017-06-16 — Order passed commencing…**: NCLT passed an order commencing the Corporate Insolvency Resolution Process against A&A…
- **2017-06-23 — Debt Pay…**: A&A International Trading Pvt Ltd paid…

## 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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