# In the matter of Prayaas Packaging Private Limited I.A No. 1220 & 1286-KB-2020 in C.P. (IB) No. 1193-KB-2019

> NCLT judgment dated 2021-02-02. Citation: TCN-2021-NCLT-03167. The case involves applications (I.A. No. 1220/KB/2020 and I.A. No. 1286/KB/2020) filed in…

- **Court:** NCLT
- **Order date:** 2 Feb 2021
- **Citation:** TCN-2021-NCLT-03167
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/prayaas-packaging-private-limited-ia-no-1220-1286-kb-2020-in-cp-ib-no-1193-kb-20-830e7de2

## Summary

### Background

The case involves applications (I.A. No. 1220/KB/2020 and I.A. No. 1286/KB/2020) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against Prayaas Packaging Private Limited (Corporate Debtor) under C.P. (IB) No. 1193/KB/2019. The applications were filed by Anil Kumar Vijay, a suspended director of the Corporate Debtor, seeking a stay of the CIRP and dismissal of the underlying CP (IB) No. 1193 of 2019, citing a settlement agreement with the Operational Creditor (JJ. Plastalloy Private Limited). The CoC initially agreed to a settlement but later withdrew its consent for filing a withdrawal application under section 12A of the Insolvency and Bankruptcy Code, 2016.

## Facts

The Corporate Debtor, Prayaas Packaging Private Limited, was admitted into CIRP on 2020-03-13 based on an application by Respondent No. 2. Anil Kumar Vijay, a suspended director of Prayaas Packaging, filed applications seeking a stay of the CIRP and dismissal of the underlying CP (IB) No. 1193 of 2019, citing a settlement agreement with the Operational Creditor, JJ. Plastalloy Private Limited. The applicant claimed that a settlement was reached with the Operational Creditor, with payment of Rs.5,00,000/- agreed upon. The applicant informed the IRP, Sandip Kumar Kejriwal, of the settlement. The first CoC meeting was held on 2020-06-25, where it was resolved that signed hard copies of the settlement agreement and Form FA would be handed over to the IRP by 2020-07-03. The

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## Issues and analysis

### Issue 1: Whether the decision of the Respondent No. 1 taken at the third CoC meeting held on September 28, …

**Ratio:** The ratio is based on the principle that the object of the Code is to enable a resolution

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**Reasoning:** The court reasoned that the respondents should have duly considered the facts and

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**Interpretation:** The interpretation is that the court should look at the substance of the matter

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Anil Kumar…
- **Respondents:** Prayaas Packaging…; Sandip Kumar…
- **Advocates:** Ratnanko B…; Sristi Barm…; +3 more

## Timeline

- **2020-03-13 — CIRP Admi…**: The Corporate Debtor was admitted to CIRP based on the application made by Respondent No.…
- **2020-03-17 — CIRP Initiation…**: The applicant came to know of the initiation of CIRP against the Corporate Debtor via…

## 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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