# in the matter of A&A International Trading Pvt. Ltd. CP-511-IB-CB-2017

> NCLT judgment dated 2017-07-18. Citation: TCN-2017-NCLT-00733. 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-00733
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aa-international-trading-pvt-ltd-cp-511-ib-cb-2017-aef9e433

## 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 initiated, 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 filed a petition against A&A International Trading Pvt Ltd under Section 9 of the Insolvency & Bankruptcy Code, 2016. The NCLT initiated the Corporate Insolvency Process and declared a moratorium. However, Phoenix Global DMCC did not propose an Insolvency Resolution Professional (IRP). A reference was made to IBBI for recommending an IRP. Subsequently, Phoenix Global DMCC filed a memo seeking recall of the order dated 16.06.2017. A&A International Trading Pvt Ltd was directed to file an affidavit stating it had not defaulted on other debts. A&A International Trading Pvt Ltd paid Phoenix Global DMCC US $2,50,000 on 23rd June 2017, settling the outstanding debts. Phoenix Global DMCC admitted to the settlement.

## Issues and analysis

### Issue 1: Whether the order dated 16.06.2017 initiating the …

**Ratio:** The Tribunal has inherent powers under Rule 11 of NCLT Rules, 2016 to recall its orders

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**Reasoning:** The court reasoned that the Corporate Debtor had settled the outstanding debts with the

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**Interpretation:** Rule 11 of NCLT Rules, 2016 allows the Tribunal to exercise its inherent powers

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**Application:** The court applied the principle of inherent powers to recall the order dated

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## Parties

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

## Timeline

- **2017-06-16 — Order Pa…**: Order passed initiating…
- **2017-06-23 — Debt Sett…**: Corporate Debtor paid US…

## 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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