# In the matter of Metro Builders Orrisa Pvt. Ltd. IA No. 179-CTB-2019 in CP (IB) No. CTB-2019

> NCLT judgment dated 2019-12-11. Citation: TCN-2019-NCLT-00234. IA No. 179/CTB/2019 was filed by the Operational Creditor seeking termination of the Corporate…

- **Court:** NCLT
- **Order date:** 11 Dec 2019
- **Citation:** TCN-2019-NCLT-00234
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/metro-builders-orrisa-pvt-ltd-ia-no-179-ctb-2019-in-cp-ib-no-ctb-2019-d11cfe55

## Summary

### Background

IA No. 179/CTB/2019 was filed by the Operational Creditor seeking termination of the Corporate Insolvency Resolution Process (CIRP) that had commenced on December 2, 2019, following the admission of their petition. The Operational Creditor and Corporate Debtor, along with their respective counsels, were present before the Adjudicating Authority. The parties had reached a settlement under a Memorandum of Settlement, with the Operational Creditor having already received a portion of the settlement amount. Consequently, they sought permission from the Adjudicating Authority to withdraw the application filed by the Operational Creditor. The IRP appointed by the Adjudicating Authority was not present. Both the Corporate Debtor and Operational Creditor confirmed that a

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## Facts

The Operational Creditor filed IA No. 179/CTB/2019 seeking termination of the CIRP, which was initiated on 2019-12-02. The Operational Creditor and Corporate Debtor reached a settlement under a Memorandum of Settlement. The Operational Creditor had already received a portion of the settlement amount. No COC had been constituted. The Operational Creditor had settled the dues to the IRP. The IRP was not present before the Adjudicating Authority. The case references the Supreme Court's decision in 'Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of India & Ors.', W.P.(C) 99/2018. The key fact is the settlement between the parties before the formation of COC, which allowed for the termination of CIRP.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can permit the withdrawal of an application for initiation of …

**Ratio:** The CIRP can be terminated prior to the constitution of the COC if a compromise is

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**Reasoning:** The court reasoned that since the parties had settled their claims and no COC had been

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**Interpretation:** This legal issue concerns the flexibility within the Insolvency and Bankruptcy

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

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## Parties

- **Judges:** Sucharit…; Satya Ranjan…
- **Appellants:** M/s Vikas…
- **Respondents:** Metro Builders…

## Timeline

- **2019-12-02 — Initiation…**: CIRP was initiated based on the admission…
- **2019-12-11 — Hearing…**: Hearing held on the matter of IA No.…

## 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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