# In the matter of Alipurduar Tea Co. Limited IA 443-KB-2021
In CP(IB) No.992-KB-2019

> NCLT judgment dated 2021-04-27. Citation: TCN-2021-NCLT-02292. The case involves an application (IA/443(KB)2021) filed by the Interim Resolution Professional…

- **Court:** NCLT
- **Order date:** 27 Apr 2021
- **Citation:** TCN-2021-NCLT-02292
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alipurduar-tea-co-limited-ia-443-kb-2021-in-cpib-no992-kb-2019-1307d170

## Summary

### Background

The case involves an application (IA/443(KB)2021) filed by the Interim Resolution Professional (IRP) seeking to withdraw the underlying Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. This withdrawal is based on a settlement reached between the Operational Creditor and one of the shareholders of the Corporate Debtor. Previously, another application (IA/93(KB)2021) was filed by the same Operational Creditor seeking to withdraw the company petition, but it was dismissed because it was not filed by the IRP as required by IBBI regulations. The CIRP was initiated on 20/02/2020, and several financial and operational creditors filed claims.

## Facts

The Interim Resolution Professional (IRP) filed an application (IA/443(KB)2021) to withdraw the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. This application was based on a settlement between the Operational Creditor and one of the shareholders of the Corporate Debtor. Earlier, the same Operational Creditor had filed another application (IA/93(KB)2021) to withdraw the company petition, but it was dismissed because it was not filed by the IRP, as required by regulation 30A(i)(a) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. The CIRP was initiated on 20/02/2020, and several financial and operational creditors filed claims. The claim of Jai Trading Company, the original petitioning company, had been

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## Issues and analysis

### Issue 1: Whether the application filed by the IRP seeking withdrawal of the CIRP should be allowed based on …

**Ratio:** The legal principle applied is that a CIRP can be withdrawn if a settlement is reached

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**Reasoning:** The court considered the settlement reached between the Operational Creditor and one of

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**Interpretation:** This implies that settlements are encouraged in insolvency proceedings, and the

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**Application:** The court applied this principle to the specific facts of the case, where a

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** Alipurduar Tea…; Jai Trading…

## Timeline

- **2020-02-20 — Commencement…**: CIRP commenced against…
- **2021-03-04 — No Dues Cert…**: State Bank of India, the sole secured…

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