# In the matter of K K R AGro Mills Private Limited IBA-40-KOB-2020

> NCLT judgment dated 2021-03-12. Citation: TCN-2021-NCLT-02726. M/s Flexi Plast Industries, the operational creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 12 Mar 2021
- **Citation:** TCN-2021-NCLT-02726
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/k-k-r-agro-mills-private-limited-iba-40-kob-2020-178485aa

## Summary

### Background

M/s Flexi Plast Industries, the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s KKR Agro Mills Private Limited, the corporate debtor, for recovery of Rs. 6,79,377/- due to default in payment of debt. The respondent filed a counter affidavit opposing the reliefs sought. During the hearing on March 3, 2021, the operational creditor's counsel sought to withdraw the application with liberty to file a fresh one. A withdrawal application was filed, revealing that the corporate debtor had made a payment of Rs. 6,00,000/- on August 1, 2019, which was wrongly credited to another account. The applicant admitted the error in accounting. The remaining balance due is Rs. 79,337/-.

## Facts

M/s Flexi Plast Industries, as the operational creditor, initiated proceedings against M/s KKR Agro Mills Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking recovery of Rs. 6,79,377/-. The corporate debtor allegedly defaulted on the payment. The respondent filed a counter affidavit opposing the application. During the proceedings, it was revealed that the corporate debtor had made a payment of Rs. 6,00,000/- on August 1, 2019, which was incorrectly credited to the account of M/s KKR Product and Marketing Private Limited. The operational creditor acknowledged the accounting error. The remaining unpaid balance was Rs. 79,337/-. The operational creditor then sought permission to withdraw the application with the

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## Issues and analysis

### Issue 1: Whether the operational creditor should be granted permission to withdraw the application filed …

**Ratio:** The court has the discretion to allow the withdrawal of an application filed under the

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**Reasoning:** The court considered the operational creditor's admission of an error in accounting for a

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**Interpretation:** The interpretation of the law allows for the withdrawal of an application under

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**Application:** In this case, the ratio and reasoning were applied to the specific facts where

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## Parties

- **Judges:** Ashok Kumar…
- **Appellants:** M/s Flexi Plast…
- **Respondents:** M/s KKR Agro…

## Timeline

- **N/A — Application…**: M/s Flexi Plast Industries filed an application under Section 9 of the Insolvency and…
- **N/A — Counter Aff…**: The respondent, M/s KKR Agro Mills Private Limited, filed a counter affidavit opposing…

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