# In the matter of Jericho Chemicals LLP I.A.No.28-2021 In C.P.(IB)-40-GB-2019

> NCLT judgment dated 2021-05-05. Citation: TCN-2021-NCLT-02207. The matter pertains to a petition for the termination of the Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 5 May 2021
- **Citation:** TCN-2021-NCLT-02207
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jericho-chemicals-llp-iano28-2021-in-cpib-40-gb-2019-01d5acbb

## Summary

### Background

The matter pertains to a petition for the termination of the Corporate Insolvency Resolution Process (CIRP) of M/S Dynamic Engineering Ltd. The Interim Resolution Professional (IRP) filed the petition for withdrawal of CIRP. The suspended partners of the corporate debtor (CD) had filed an appeal before the NCLAT against the admission of the application under Section 9.

## Facts

The Interim Resolution Professional (IRP) sought the withdrawal of the Corporate Insolvency Resolution Process (CIRP) for M/S Dynamic Engineering Ltd. The matter was settled between the Operational Creditor (OC) and the Corporate Debtor (CD), and the Committee of Creditors (CoC) was not constituted. The CD reported paying Rs 30.00 lacs to the OC and Rs 2.00 lacs to the IRP for full and final settlement. The suspended partners of the CD had filed an appeal before the NCLAT against the admission of the application under Section 9. The IRP/Counsel of CD promised to file an affidavit for withdrawal of the appeal filed before the NCLAT within three days. The Counsel of the OC confirmed the settlement during the proceedings.

## Issues and analysis

### Issue 1: Whether the CIRP of the Corporate Debtor should be terminated based on the settlement between the …

**Ratio:** CIRP can be terminated if the matter has been settled between the Operational Creditor

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**Reasoning:** The court considered the IRP's prayer for withdrawal of the CIRP, noting that the matter

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**Interpretation:** This implies that if a settlement is reached before the formation of the CoC,

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**Application:** Since the matter was settled between the OC and the CD, and the CoC was not

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## Parties

- **Judges:** H.V. Subb…; Prasanta Kumar…
- **Respondents:** M/S Dynamic…; Ms K. B…
- **Advocates:** Mr V. G…

## Timeline

- **2021-05-05 — Hearing…**: Hearing of the case…
- **2021-05-05 — IRP Prays for W…**: The IRP prays for withdrawal of the Petition/termination of CIRP as the matter has been…

## 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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