# In the matter of Jairam Foundry Private Limited C.P (IB) No. 235-09-HDB-2019

> NCLT judgment dated 2019-07-16. Citation: TCN-2019-NCLT-02494. The case involves a petition filed by Graphite & Mineral Products, an operational creditor,…

- **Court:** NCLT
- **Order date:** 16 Jul 2019
- **Citation:** TCN-2019-NCLT-02494
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jairam-foundry-private-limited-cp-ib-no-235-09-hdb-2019-347035bc

## Summary

### Background

The case involves a petition filed by Graphite & Mineral Products, an operational creditor, against Jairam Foundry Pvt Ltd, the corporate debtor, under Section 9 of the IBC, 2016. The operational creditor filed a withdrawal memo stating that the corporate debtor had paid the outstanding amount of Rs. 12,09,950 through NEFT. The petition was filed before being admitted.

## Facts

Graphite & Mineral Products, the operational creditor, initiated insolvency proceedings against Jairam Foundry Pvt Ltd, the corporate debtor, under Section 9 of the IBC, 2016, for an outstanding debt. Prior to the admission of the petition, Jairam Foundry Pvt Ltd made a payment of Rs. 12,09,950 to Graphite & Mineral Products through NEFT, settling the entire claim. Consequently, Graphite & Mineral Products filed a withdrawal memo seeking to withdraw the insolvency petition. The key fact is the settlement of the debt before the admission of the petition, which allowed for the withdrawal.

## Issues and analysis

### Issue 1: Whether the operational creditor can withdraw the petition filed under Section 9 of the IBC, 2016, …

**Ratio:** An operational creditor is permitted to withdraw an insolvency petition before its

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**Reasoning:** The court reasoned that since the entire claim of the operational creditor was paid by

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**Interpretation:** This interprets the IBC as prioritizing resolution and settlement of debts. It

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**Application:** In this case, the operational creditor received the full payment of Rs.

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## Parties

- **Judges:** Ratakonda…; Ratakonda…
- **Appellants:** Graphite &…
- **Respondents:** Jairam Foundry…

## Timeline

- **2019-04-24 — Hearing…**: Hearing held on…
- **2019-05-16 — Hearing…**: Hearing held on…

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