# In the matter of Abu Estate P. L. (N.A.ABU Thahir & 3 Ors. Vs. Within & Anr.) MA-26-IB-2018 IN CP No. 669-IB-2017

> NCLT judgment dated 2018-04-24. Citation: TCN-2018-NCLT-01511. The case involves an application (MA/26/IB/2018) filed in CP/669/IB/2017. The applicant sought…

- **Court:** NCLT
- **Order date:** 24 Apr 2018
- **Citation:** TCN-2018-NCLT-01511
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abu-estate-p-l-naabu-thahir-3-ors-vs-within-anr-ma-26-ib-2018-in-cp-no-669-ib-20-2277270e

## Summary

### Background

The case involves an application (MA/26/IB/2018) filed in CP/669/IB/2017. The applicant sought the recall of an order dated 26.03.2018, arguing that the operational creditor, who initiated CIRP against the corporate debtor, had been paid. A memo of compromise was entered into between the parties, placed on record, and executed on 23.04.2018, confirming the payment of Rs. 10,50,000 to the operational creditor, M/s. Within. The IRP submitted a report stating that a public announcement was made on 11.04.2018, with the claim period expiring on 21.04.2018. Two claims were received, one from the applicant/operational creditor and another from the financial creditor, Federal Bank Limited. Federal Bank Limited issued a certificate dated 18.04.2018, stating that the corporate

…

## Facts

N.A.Abu Thahir & 3 Ors filed CP/669/IB/2017 against Within & Anr. An order was passed on 26.03.2018. The applicant sought to recall the order because the operational creditor (N.A.Abu Thahir & 3 Ors) had been paid Rs. 10,50,000 by the corporate debtor (Within & Anr). A memo of compromise was executed on 23.04.2018. The IRP made a public announcement on 11.04.2018, with the claim period expiring on 21.04.2018. Two claims were received. Federal Bank Limited issued a certificate on 18.04.2018 stating that the corporate debtor's accounts were regular. The IRP suggested that CIRP may not be necessary. The relevance of these facts lies in demonstrating that the initial grounds for initiating CIRP no longer existed due to the settlement and the financial

…

## Issues and analysis

### Issue 1: Whether the order dated 26.03.2018 should be recalled given the settlement between the operational …

**Ratio:** When a settlement is reached between the operational creditor and the corporate debtor,

…

**Reasoning:** The court reasoned that the primary basis for initiating CIRP, which was the unpaid debt

…

**Interpretation:** This interprets the IBC to allow for the termination of CIRP when the

…

**Application:** The ratio was applied to the specific facts of the case, where the operational

…

## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** N.A.ABU T…
- **Respondents:** WITH…

## Timeline

- **2018-03-26 — Initial…**: An order was passed,…
- **2018-04-11 — Public Annou…**: IRP made a public…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/abu-estate-p-l-naabu-thahir-3-ors-vs-within-anr-ma-26-ib-2018-in-cp-no-669-ib-20-2277270e