# In the matter of Paramount Propbuild Pvt. Ltd.
IA-3699-2020 in (IB)-1678-ND-2018

> NCLT judgment dated 2020-09-14. Citation: TCN-2020-NCLT-00629. The case involves an application (IA/3699/2020) filed under Rule 11 seeking the withdrawal of…

- **Court:** NCLT
- **Order date:** 14 Sept 2020
- **Citation:** TCN-2020-NCLT-00629
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/paramount-propbuild-pvt-ltd-ia-3699-2020-in-ib-1678-nd-2018-79fb4d18

## Summary

### Background

The case involves an application (IA/3699/2020) filed under Rule 11 seeking the withdrawal of IB-1678/ND/2018. The Corporate Debtor, represented by Mr. Subramaniam, stated that they have settled the matter with the Financial Creditor, Morgan Asis Ltd. A settlement agreement executed on September 2, 2020, was placed on record. The Resolution Professional's counsel, Mr. AbhishekAnand, stated that invoices related to CIRP costs have been submitted. Mr. Subramaniam stated that a cheque is ready to be sent to the Learned Counsel for IRP. Mr. Neeraj Gupta, appearing for another claimant, filed a claim and referenced a Supreme Court judgment in the Swiss Ribbon case, suggesting the application should not be allowed until his claim is settled.

## Facts

Morgan Asis Ltd. initiated insolvency proceedings against Paramount Propbuild Pvt. Ltd. under Section 7 of the IBC. A settlement agreement was reached between Morgan Asis Ltd. and Paramount Propbuild Pvt. Ltd. on September 2, 2020. An application (IA/3699/2020) was filed seeking the withdrawal of the insolvency proceedings (IB-1678/ND/2018). The Resolution Professional had submitted invoices for CIRP costs. A cheque for the IRP was ready to be sent. The CoC had not been formed. Another claimant, Mr. Neeraj Gupta, filed a claim, citing the Supreme Court's Swiss Ribbon judgment. The Corporate Debtor's counsel cited a judgment passed by the Principal Bench relying on para 52 of the Swiss Ribbon case. The IRP confirmed that no records or assets were received from the

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the insolvency proceedings should be allowed given the …

**Ratio:** A settlement between the Corporate Debtor and the Financial Creditor can be a valid

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**Reasoning:** The court considered the settlement agreement placed on record and the submissions of

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**Interpretation:** The IBC allows for withdrawal of insolvency proceedings under certain

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**Application:** In this case, the court allowed the withdrawal based on the settlement,

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## Parties

- **Judges:** DEEPTI M…; SUMITAPURKA…
- **Appellants:** Morgan Asi…
- **Respondents:** Paramount…
- **Advocates:** AmolS…; Kshitiz…; +3 more

## Timeline

- **2020-09-02 — Settlement Ag…**: Settlement agreement…
- **2020-09-14 — Order Del…**: Order delivered allowing the…

## 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)

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