# In the matter of Jharkhand States Mineral Development Corporation Ltd. 
CA(IB)No.1524-KB-2019 in CP (IB) No. 1141-KB-2018

> NCLT judgment dated 2019-11-18. Citation: TCN-2019-NCLT-00576. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Naresh Kr.…

- **Court:** NCLT
- **Order date:** 18 Nov 2019
- **Citation:** TCN-2019-NCLT-00576
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jharkhand-states-mineral-development-corporation-ltd-caibno1524-kb-2019-in-cp-ib-8445b376

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Naresh Kr. & Co. Pvt. Ltd. The Operational Creditor filed CA(IB) No. 1524/KB/2019 for withdrawal of the CP, as the matter was settled amicably between the Operational Creditor and the Corporate Debtor. A previous order dated 2019-10-25 directed the Operational Creditor to deposit Rs. 2,00,000 in an Escrow Account for preliminary expenses, which was complied with.

## Facts

Naresh Kr. & Co. Pvt. Ltd. faced a CIRP under Section 9 of the IBC, initiated by an Operational Creditor. The Operational Creditor filed CA(IB) No. 1524/KB/2019 to withdraw the CP, stating that the matter had been settled amicably with the Corporate Debtor. A previous order required the Operational Creditor to deposit Rs. 2,00,000 in an Escrow Account for preliminary expenses, which was complied with. No claims were received following a public announcement. The IRP's fees and costs were already paid. The Vakalatnama on behalf of the IRP was filed and recorded.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP should be allowed given the amicable settlement …

**Ratio:** When parties settle a matter amicably outside of court, and no other claims are

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**Reasoning:** The court was satisfied that the matter was settled out of the Tribunal, no claims were

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**Interpretation:** This reflects the principle that courts encourage settlements and will

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**Application:** The court applied this principle by allowing the withdrawal of the CIRP, as the

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Respondents:** Jharkhand State…; Naresh Kr. & Co.…

## Timeline

- **2019-11-18 — Hearing…**: Hearing held on November…
- **2019-10-25 — Order to Depos…**: Order dated October 25, 2019, directing the Operational Creditor to deposit Rs. 2,00,000…

## 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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