# In the matter of KVR Industries Private Limited IA No.. 37-2020 In TCP (IB) No. 111-9-AMR-2019 {CP (IB) No. 412-9-HDB-2019}

> NCLT judgment dated 2020-02-21. Citation: TCN-2020-NCLT-01843. The case involves an application filed by the Operational Creditor seeking withdrawal of a…

- **Court:** NCLT
- **Order date:** 21 Feb 2020
- **Citation:** TCN-2020-NCLT-01843
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kvr-industries-private-limited-ia-no-37-2020-in-tcp-ib-no-111-9-amr-2019-cp-ib-n-00e4ef9c

## Summary

### Background

The case involves an application filed by the Operational Creditor seeking withdrawal of a Company Petition under Section 12A of the Insolvency and Bankruptcy Code, 2016. The Applicant (Operational Creditor) had previously filed TCP (IB) No. 111/9/AMR/TP/2019 (CP (IB) No. 412/9/HDB/2019) against the Corporate Debtor under section 9 of the IBC, alleging default in payment of an Operational Debt. The Tribunal admitted the Petition on 2020-02-12 and directed initiation of Corporate Insolvency Resolution Process (CIRP) of the Respondent. Before the Interim Resolution Professional could take charge or the Committee of Creditors (CoC) could be constituted, the parties amicably settled the matter.

## Facts

M/s Eshwar Enterprises, a sole proprietorship firm, filed TCP (IB) No. 111/9/AMR/TP/2019 (CP (IB) No. 412/9/HDB/2019) against M/s. KVR Industries Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016, alleging default in payment of an Operational Debt. The NCLT admitted the petition on 2020-02-12 and initiated the Corporate Insolvency Resolution Process (CIRP). However, before the Interim Resolution Professional (IRP) could take charge or the Committee of Creditors (CoC) could be constituted, the parties reached an amicable settlement. Consequently, the Operational Creditor sought to withdraw the Company Petition. The CIRP had not progressed, and the CoC had not been formed, making it appropriate to allow the parties to settle their disputes and

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## Issues and analysis

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

**Ratio:** Section 60(5) of the IBC read with rule 11 of the NCLT Rules, 2016, allows the Tribunal

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**Reasoning:** The court reasoned that since the CIRP had not progressed and the CoC had not been

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**Interpretation:** This interpretation of Section 60(5) and rule 11 emphasizes the Tribunal's

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**Application:** In this case, the parties had settled amicably before the IRP took charge or

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## Parties

- **Judges:** Janab Mohammed…
- **Appellants:** Eshwar Ente…
- **Respondents:** KVR Industries…; KVR Industries…
- **Advocates:** KIKI…; M. Ramang…; +2 more

## Timeline

- **N/A — Filing of TCP (IB) No. 111/9/AMR/TP/2019 (CP…**: The Applicant (OC) filed TCP (IB) No. 111/9/AMR/TP/2019 (CP (IB) No. 412/9/HDB/2019)…
- **2020-02-12 — Admission of Petition…**: The Tribunal admitted the Petition and directed initiation of Corporate Insolvency…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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