# In the matter of Radhey Foam Pvt. Ltd. IA No. 377-2019 in CP (IB) No. 367-9-NCLT-AHM-2018

> NCLT judgment dated 2019-07-17. Citation: TCN-2019-NCLT-02482. The case involves an application (IA 377 of 2019) filed in connection with a Corporate…

- **Court:** NCLT
- **Order date:** 17 Jul 2019
- **Citation:** TCN-2019-NCLT-02482
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/radhey-foam-pvt-ltd-ia-no-377-2019-in-cp-ib-no-367-9-nclt-ahm-2018-67ece3ca

## Summary

### Background

The case involves an application (IA 377 of 2019) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated against Radhey Foam Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor, Pranay Dye Chem, filed the initial IB Petition (CP (IB) No. 367 of 2018). After the admission of the petition and appointment of an Interim Resolution Professional (IRP), Mr. Bhavan Trivedi, the operational creditor and the corporate debtor reached an amicable settlement. The application seeks withdrawal of the IB Petition and recall of the CIRP based on this settlement.

## Facts

Pranay Dye Chem, an operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Radhey Foam Pvt. Ltd. by filing CP (IB) No. 367 of 2018. The Adjudicating Authority admitted the petition on 2019-06-14 and appointed Mr. Bhavan Trivedi as the Interim Resolution Professional (IRP). Before the constitution of the Committee of Creditors (CoC), the operational creditor and the corporate debtor reached an amicable settlement. The corporate debtor paid Rs. 16,50,000/- to the operational creditor towards full and final settlement of its dues. The operational creditor then filed IA 377 of 2019 seeking withdrawal of the IB Petition and recall of the CIRP. The IRP had submitted his willingness to act as IRP but was awaiting confirmation from the IBBI. The

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of an IB Petition after its admission …

**Ratio:** The Supreme Court in Swiss Ribbons Pvt. Ltd. & Anr. Versus UOI & Ors. held that

…

**Reasoning:** The court reasoned that since the CoC had not been formally constituted, there was no

…

**Interpretation:** This interpretation clarifies that the NCLT has the discretion to allow

…

**Application:** In this case, the CoC had not been constituted, and the operational creditor

…

## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Appellants:** Pranay Dy…
- **Respondents:** Radhey Foam Pvt.…

## Timeline

- **2018-01-01 — Filing of IB…**: Pranay Dye Chem filed CP (IB) No. 367 of…
- **2019-06-14 — Admission of IB…**: The Adjudicating Authority admitted the IB Petition and appointed Mr. Bhavan Trivedi as…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/radhey-foam-pvt-ltd-ia-no-377-2019-in-cp-ib-no-367-9-nclt-ahm-2018-67ece3ca