# In the matter of Kothari Auto Parts Manufactures Pvt. Ltd. C.P.(IB)-4110(MB)-2019

> NCLT judgment dated 2021-05-28. Citation: TCN-2021-NCLT-02091. The matter was taken up through Virtual Hearing (VC). The counsel for the Financial Creditor,…

- **Court:** NCLT
- **Order date:** 28 May 2021
- **Citation:** TCN-2021-NCLT-02091
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kothari-auto-parts-manufactures-pvt-ltd-cpib-4110mb-2019-4aa2c173

## Summary

### Background

The matter was taken up through Virtual Hearing (VC). The counsel for the Financial Creditor, Mr. Minil Shah, and the counsel for the Corporate Debtor, Mr. Shyam Kapadia, appeared. Both counsels submitted that subsequent to the order being reserved in April 2021, the Corporate Debtor issued a pay order dated 2021-04-28 for approximately Rs. 3.30 crores, which was encashed by the Financial Creditor. A withdrawal memo and consent terms dated 2020-05-18 were also filed.

## Facts

The matter was heard through virtual hearing. Mr. Minil Shah appeared as counsel for the Financial Creditor, and Mr. Shyam Kapadia appeared as counsel for the Corporate Debtor. After the order was reserved in April 2021, the Corporate Debtor issued a pay order dated 2021-04-28 for approximately Rs. 3.30 crores, which the Financial Creditor encashed. A withdrawal memo and consent terms dated 2020-05-18 were filed. These actions led to the court granting permission to withdraw the petition. The payment by the Corporate Debtor to the Financial Creditor is a key fact, as it likely formed the basis for the withdrawal of the petition.

## Issues and analysis

### Issue 1: Whether the petition C.P.(IB)-4110(MB)/2019 should be allowed to be withdrawn given the payment …

**Ratio:** The legal principle applied is that a petition can be withdrawn if the parties reach a

…

**Reasoning:** The court reasoned that, in view of the submissions made by the counsel for both parties,

…

**Interpretation:** The interpretation is that if the parties involved in a petition mutually agree

…

**Application:** In this case, the Corporate Debtor's payment to the Financial Creditor, coupled

…

## Parties

- **Judges:** Harihar Prakash…; RavikumarDu…
- **Appellants:** Rahul…
- **Respondents:** Kothari Auto…

## Timeline

- **2020-05-18 — Withdrawal Memo and…**: A withdrawal memo and consent…
- **2021-04-01 — Order Res…**: The order in the matter was…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/kothari-auto-parts-manufactures-pvt-ltd-cpib-4110mb-2019-4aa2c173