# In the matter of Famica Press Industries Pvt. Ltd. CA(IB)No. 858-KB-2019 in CP (IB) No. 1241-KB-2018

> NCLT judgment dated 2019-07-19. Citation: TCN-2019-NCLT-02423. The case involves CP (IB) No. 1241/KB/2018 and CA(IB) No. 858/KB/2019 before the National…

- **Court:** NCLT
- **Order date:** 19 Jul 2019
- **Citation:** TCN-2019-NCLT-02423
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/famica-press-industries-pvt-ltd-caibno-858-kb-2019-in-cp-ib-no-1241-kb-2018-078cca62

## Summary

### Background

The case involves CP (IB) No. 1241/KB/2018 and CA(IB) No. 858/KB/2019 before the National Company Law Tribunal, Kolkata Bench. The matter pertains to Tata Steel Processing and Distributors Ltd. versus M/s. Famica Press Industries Pvt. Ltd. CA (IB) No. 858/KB/2019 was filed by the Operational Creditors, Tata Steel Processing and Distributors Ltd., for withdrawal of the proceedings under Section 12A of the 'I & B Code, 2016'.

## Facts

Tata Steel Processing and Distributors Ltd. initiated Corporate Insolvency Resolution Process against M/s. Famica Press Industries Pvt. Ltd. under Section 9 of the IBC. CA (IB) No. 858/KB/2019 was filed by Tata Steel Processing and Distributors Ltd., the Operational Creditor, seeking withdrawal of the proceedings under Section 12A of the 'I & B Code, 2016'. The Committee of Creditors had not been formed, and no Expression of Interest had been published. The parties reached a settlement, leading to the application for withdrawal. The settlement is the key fact that led to the disposal of the case.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of CA(IB) No. 858/KB/2019 should be allowed given the …

**Ratio:** When parties to a dispute reach a settlement, courts generally favor allowing withdrawal

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**Reasoning:** The court noted that the parties had settled the dispute, which is a valid ground for

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**Interpretation:** The interpretation of Section 12A of the 'I & B Code, 2016' allows for

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**Application:** Since the parties settled, the ratio and reasoning support allowing the

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## Parties

- **Judges:** Madan B.…; Harish Chander…
- **Appellants:** Tata Steel…
- **Respondents:** M/s. Famica Press…
- **Advocates:** Rr.N. G…; Ankita Muk…; +3 more

## Timeline

- **2019-07-19 — Hearing…**: Hearing held on July…

## 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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