# In the matter of Paramount Impex (P) Limited CA No. 510-C-III-ND-19 in IB-1484-ND-2018

> NCLT judgment dated 2019-08-08. Citation: TCN-2019-NCLT-02037. The case involves an application (CA No.510/2019) moved under Section 12(A) of the Insolvency…

- **Court:** NCLT
- **Order date:** 8 Aug 2019
- **Citation:** TCN-2019-NCLT-02037
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/paramount-impex-p-limited-ca-no-510-c-iii-nd-19-in-ib-1484-nd-2018-d1b45003

## Summary

### Background

The case involves an application (CA No.510/2019) moved under Section 12(A) of the Insolvency and Bankruptcy Code, 2016, concerning the Corporate Insolvency Resolution Process (CIRP) of a Corporate Debtor. The CIRP was initiated following a petition by an Operational Creditor and admitted by the Tribunal. An Interim Resolution Professional (IRP), Mr. Vishal Malhotra, was appointed. However, attempts to constitute a Committee of Creditors (COC) were unsuccessful despite compliance with IBC, 2016, due to the Operational Creditor and Corporate Debtor settling the matter between themselves and the absence of any other claims.

## Facts

An Operational Creditor filed a petition seeking the initiation of Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor. The Tribunal admitted the petition and appointed Mr. Vishal Malhotra as the Interim Resolution Professional (IRP). Attempts to constitute a Committee of Creditors (COC) were unsuccessful despite compliance with the Insolvency and Bankruptcy Code (IBC), 2016, including newspaper publications in Chandigarh and Delhi. The Operational Creditor and the Corporate Debtor were settling the matter between themselves, and no other claims were received. The IRP filed an application to close the CIRP, stating that the necessary forms had been lodged and expenses covered. The Tribunal considered the application and the consent of the IRP.

## Issues and analysis

### Issue 1: Whether the CIRP should be closed due to the settlement between the Operational Creditor and the …

**Ratio:** The legal principle applied is that if the Operational Creditor and the Corporate Debtor

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**Reasoning:** The court reasoned that since the Operational Creditor and the Corporate Debtor were

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**Interpretation:** This interprets the IBC to allow for the closure of CIRP when the primary

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**Application:** In this specific case, the Operational Creditor and the Corporate Debtor were

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## Parties

- **Judges:** R. VARADH…; K.K. V…
- **Appellants:** HH Chem…
- **Respondents:** Paramount Impex…

## Timeline

- **2019-07-11 — Tribunal…**: Tribunal admitted the…
- **2019-07-14 — Newspaper Pub…**: Publication in 'Financial Express' and…

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