# In the matter of Harish Bakers and Confectioners Pvt. Ltd. (IB)-939(ND)2019

> NCLT judgment dated 2020-01-08. Citation: TCN-2020-NCLT-02427. The case involves a Corporate Insolvency Resolution (CIR) process that was initiated but…

- **Court:** NCLT
- **Order date:** 8 Jan 2020
- **Citation:** TCN-2020-NCLT-02427
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/harish-bakers-and-confectioners-pvt-ltd-ib-939nd2019-74c82786

## Summary

### Background

The case involves a Corporate Insolvency Resolution (CIR) process that was initiated but subsequently stayed due to a proposed settlement by the Corporate Debtor. The Interim Resolution Professional (IRP) confirmed that despite publication, no other claims were received, and no Committee of Creditors (COC) was constituted. The petitioner's claim was fully satisfied, leading to a request for termination of the CIR process.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Ready Roti India Pvt. Ltd. However, the CIRP was stayed following a settlement proposed by the Corporate Debtor. The Interim Resolution Professional (IRP) confirmed that no other claims were received, and no Committee of Creditors (COC) was constituted. The petitioner's claim was fully satisfied. The petitioner requested the termination of the CIRP. The court considered the decision of the Hon'ble Apex Court in 'Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of India & Ors.', W.P.(C) 99/2018, which supports the termination of the CIRP when a settlement is achieved before the formation of a COC. The relevance of these facts lies in the legal principle that a settlement reached before the

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## Issues and analysis

### Issue 1: Whether the CIR process can be terminated when a settlement is reached before the constitution of a …

**Ratio:** The legal principle is that if a settlement is reached before the constitution of a COC,

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**Reasoning:** The court reasoned that since a settlement had been effected before the constitution of

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**Interpretation:** The interpretation of the law is that the primary objective of the IBC is to

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**Application:** In this case, the settlement proposed by the Corporate Debtor was confirmed by

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## Parties

- **Judges:** L. N. G…; Ina Mal…
- **Respondents:** Ready Roti India…

## Timeline

- **2018-11-29 — CIR Process…**: The CIR process was stayed in view of the…
- **2020-01-08 — Hearing…**: Hearing before the New Delhi Bench of…

## 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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