# In the matter of Rajdeep Steel Products Pvt. Ltd. MA-1430-2019 in C.P. (IB)-90-MB-2018

> NCLT judgment dated 2019-04-30. Citation: TCN-2019-NCLT-03638. The case involves MA-1430/2019 filed in C.P.(IB)/90/(MB)/2018 before the National Company Law…

- **Court:** NCLT
- **Order date:** 30 Apr 2019
- **Citation:** TCN-2019-NCLT-03638
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rajdeep-steel-products-pvt-ltd-ma-1430-2019-in-cp-ib-90-mb-2018-5a2f6d02

## Summary

### Background

The case involves MA-1430/2019 filed in C.P.(IB)/90/(MB)/2018 before the National Company Law Tribunal, Mumbai Bench. The petition was filed by Operational Creditor M/s Manhar Trading Corporation invoking the provisions of Section 9 of the I&B Code against the Respondent Company, Rajdeep Steel Products Pvt. Ltd. The Insolvency Resolution Process was initiated against the Corporate debtor Rajdeep Steel Products Private Limited. The Hon'ble Tribunal passed an order on 2019-02-11 admitting the petition against the Corporate Debtor under section 9 of the I&B Code. An IRP was appointed. The Committee of Creditors was not formed yet. The Applicant Company settled the dispute and paid the due amount.

## Facts

Manhar Trading Corporation filed a petition against Rajdeep Steel Products Pvt. Ltd. under Section 9 of the I&B Code, initiating the Insolvency Resolution Process. The Tribunal admitted the petition on 2019-02-11. An IRP was appointed. The Committee of Creditors was not yet formed. Subsequently, Rajdeep Steel Products Pvt. Ltd. settled the dispute by paying ₹8,50,000, which included the professional charges of the IRP and other expenses. As a result of the settlement, Manhar Trading Corporation sought permission to withdraw the petition. The Tribunal granted the permission, disposed of MA-1430/2019, and ordered the petition to be withdrawn and consigned to records. The key fact is the settlement of dues leading to the withdrawal of the insolvency petition.

## Issues and analysis

### Issue 1: Whether the Tribunal should allow the withdrawal of MA-1430/2019 given that the Respondent Company …

**Ratio:** The legal principle applied is that if the Corporate Debtor settles the outstanding dues,

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**Reasoning:** The Tribunal reasoned that since the Respondent Company had paid the amount due,

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**Interpretation:** This issue involves the interpretation of the I&B Code regarding the

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**Application:** In this specific case, the Respondent Company's payment of the due amount,

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Manhar Trading…
- **Respondents:** Rajdeep Steel…

## Timeline

- **2018-01-01 — Case Fil…**: C.P.(IB)/90/(MB)/2018…
- **2019-02-11 — Petition Ad…**: The Tribunal admitted the petition against the Corporate Debtor under section 9 of the…

## 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)

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