# In the matter of Pasupati Flexipack Private Limited IA No. 1030 of 2020 in {CP (IB) No. 3775-MB-2019}

> NCLT judgment dated 2020-10-01. Citation: TCN-2020-NCLT-00480. J. J. Plastalloy Private Limited, the Operational Creditor, filed CP (IB) No. 3775 of 2019…

- **Court:** NCLT
- **Order date:** 1 Oct 2020
- **Citation:** TCN-2020-NCLT-00480
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pasupati-flexipack-private-limited-ia-no-1030-of-2020-in-cp-ib-no-3775-mb-2019-4755029c

## Summary

### Background

J. J. Plastalloy Private Limited, the Operational Creditor, filed CP (IB) No. 3775 of 2019 under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Pasupati Flexipack Private Limited, the Corporate Debtor, due to an alleged default in payment of an operational debt amounting to Rs. 2,82,244/-. The Corporate Debtor initially did not appear or contest the proceedings. The NCLT admitted the Company Petition on April 28, 2020, initiating CIRP and appointing Mr. Hazari Lal Saini as the IRP.

## Facts

J. J. Plastalloy Private Limited (Operational Creditor) initiated CIRP against Pasupati Flexipack Private Limited (Corporate Debtor) under Section 9 of the IBC, 2016, for a default of Rs. 2,82,244/-. The Corporate Debtor initially did not participate in the proceedings. The NCLT admitted the petition on April 28, 2020, and appointed an IRP. The Corporate Debtor claimed lack of awareness of the petition until receiving the CIRP order. Subsequently, the Corporate Debtor expressed willingness to settle and filed an application to that effect. The IRP submitted a cost abstract, including professional fees, advertisement costs, legal fees, and expenses for factory possession. The court disallowed certain expenses related to a recovery agency and stipulated the IRP's

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor should be allowed to settle the claim and withdraw the Company …

**Ratio:** The principle of allowing settlement and withdrawal of CIRP proceedings upon payment of

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**Reasoning:** The court considered the Corporate Debtor's willingness to settle the outstanding debt

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**Interpretation:** The IBC aims to facilitate resolution and settlement of disputes. Allowing

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**Application:** The court applied the principle by directing the Corporate Debtor to pay the

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## Parties

- **Judges:** Janab Mohammed…; Ravikumar…; +1 more
- **Respondents:** Pasupati Flexipack…; J. J. Plastalloy…

## Timeline

- **2019-01-01 — Filing of CP (IB) No.…**: J. J. Plastalloy Private Limited filed CP (IB) No. 3775 of 2019 under Section 9 of the…
- **2020-04-28 — Admission of Company…**: The NCLT admitted the Company Petition and…

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