# In the matter of Balsara Engineering Products Pvt. Ltd. IA-207-CHE-2021 in IBA-1428-2019

> NCLT judgment dated 2021-03-29. Citation: TCN-2021-NCLT-02541. An application was moved by the Operational Creditor to withdraw the Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 29 Mar 2021
- **Citation:** TCN-2021-NCLT-02541
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/balsara-engineering-products-pvt-ltd-ia-207-che-2021-in-iba-1428-2019-95a9c6ab

## Summary

### Background

An application was moved by the Operational Creditor to withdraw the Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor, IBA/1428/2019. The petition was admitted on 2021-02-24, and Mr. C. Prabakaran was appointed as the Interim Resolution Professional (IRP). The reason for seeking withdrawal is that the amount claimed from the Corporate Debtor by the Applicant has been duly remitted subsequent to the initiation of the CIRP.

## Facts

Rasi Electrodes Ltd initiated CIRP against Balsara Engineering Products Pvt Ltd under IBA/1428/2019. The petition was admitted on 2021-02-24, and Mr. C. Prabakaran was appointed as the Interim Resolution Professional (IRP). Subsequently, the applicant sought to withdraw the CIRP because the amount claimed from the Corporate Debtor had been remitted. The IRP filed an affidavit stating that no charges had been incurred because a settlement had been reached between the parties. No CoC was constituted. The applicant relied on Rule 11 of NCLT Rules, 2016, and the Supreme Court's decision in Swiss Ribbons Pvt Ltd., & Ors vs. Union of India & Ors (2019) of SCC 17.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP should be allowed, considering the settlement …

**Ratio:** The legal principle applied is that the court has the power to allow the withdrawal of

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**Reasoning:** The court reasoned that since the amount claimed from the Corporate Debtor had been

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**Interpretation:** The legal issue involves interpreting the scope of the court's power to allow

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** Rasi Electrodes…
- **Respondents:** Balsara Engineerin…

## Timeline

- **2021-02-24 — Petition Ad…**: The petition was admitted, and Mr. C. Prabakaran was appointed as the Interim Resolution…
- **2021-03-19 — IRP Affidavi…**: The IRP filed an affidavit stating that no charges had been incurred because a settlement…

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