# In the matter of Howrah Mills Co. Pvt. Ltd. CA (IB) No.1680-KB-2019 in CP (IB) No. 79-KB-2019

> NCLT judgment dated 2019-12-11. Citation: TCN-2019-NCLT-00248. The case involves CP(IB)No.79/KB/2019 and CA(IB)No.1680/KB/2019 before the National Company Law…

- **Court:** NCLT
- **Order date:** 11 Dec 2019
- **Citation:** TCN-2019-NCLT-00248
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/howrah-mills-co-pvt-ltd-ca-ib-no1680-kb-2019-in-cp-ib-no-79-kb-2019-c09095f6

## Summary

### Background

The case involves CP(IB)No.79/KB/2019 and CA(IB)No.1680/KB/2019 before the National Company Law Tribunal (NCLT), Kolkata Bench. CA(IB) No. 1680/KB/2019 was filed by a shareholder of the Corporate Debtor under Rule 11 of the NCLT Rules to record settlement of the debt and closure of proceedings.

## Facts

Buplex Vyapar Pvt. Ltd. filed a case against Howrah Mills Company Ltd. under Section 7 of the IBC. A shareholder of Howrah Mills Company Ltd. filed CA(IB) No. 1680/KB/2019 under Rule 11 of the NCLT Rules, seeking to record the settlement of the debt and closure of the proceedings. The Interim Resolution Professional (IRP) confirmed that the entire claim had been satisfactorily settled, and no publication was issued due to the settlement. The Corporate Debtor's counsel agreed to pay Rs. 50,000/-. The relevance of these facts is that they demonstrate the settlement of the debt between the parties, leading to the closure of the insolvency proceedings.

## Issues and analysis

### Issue 1: Whether the settlement of the debt between the parties warrants the closure of the insolvency …

**Ratio:** When a debt is settled between the parties, the purpose of initiating insolvency

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**Reasoning:** The court considered the submissions of the IRP and the counsels, noting that the entire

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**Interpretation:** This legal principle interprets that the primary objective of the IBC is to

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**Application:** In this case, the IRP confirmed the settlement, and the Corporate Debtor's

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Buplex Vyapar…
- **Respondents:** Howrah Mills…

## Timeline

- **2019-12-11 — Hearing…**: Hearing held on December…
- **N/A — Filing of CA(IB) No.…**: CA(IB) No. 1680/KB/2019 filed by a shareholder of the Corporate Debtor under Rule 11 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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