# In the matter of SCM Garments Pvt. Ltd. IA-1268(CHE)-2021 in CP-1118-IB-2018

> NCLT judgment dated 2021-12-21. Citation: TCN-2021-NCLT-00084. The case involves an application (IA/1268(CHE)/2021) filed in CP/1118/IB/2018 by Mr. K.J.…

- **Court:** NCLT
- **Order date:** 21 Dec 2021
- **Citation:** TCN-2021-NCLT-00084
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/scm-garments-pvt-ltd-ia-1268che-2021-in-cp-1118-ib-2018-39f90eb1

## Summary

### Background

The case involves an application (IA/1268(CHE)/2021) filed in CP/1118/IB/2018 by Mr. K.J. Vinod, the Interim Resolution Professional (IRP) of SCM Garments Pvt. Ltd., the Corporate Debtor. CIRP commenced on 2021-12-17. The IRP received Form 'FA' from the Operational Creditor on 2021-12-19, indicating a settlement. The entire settlement amount and the IRP's fee have been received.

## Facts

Mr. K.J. Vinod, the IRP of SCM Garments Pvt. Ltd., filed IA/1268(CHE)/2021 in CP/1118/IB/2018. CIRP had commenced on 2021-12-17. The IRP received Form 'FA' from the Operational Creditor on 2021-12-19, signifying a settlement. The entire settlement amount and the IRP's fee were received. The IRP requested to be discharged from his duties. The key fact is the settlement between the Operational Creditor and the Corporate Debtor, leading to the IRP's request for discharge and the restoration of the company's management to its Board of Directors.

## Issues and analysis

### Issue 1: Whether the settlement between the Operational Creditor and the Corporate Debtor warrants the …

**Ratio:** A settlement between the Operational Creditor and the Corporate Debtor, especially when

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**Reasoning:** The court reasoned that since a settlement had been reached and the entire amount was

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**Interpretation:** This interprets the IBC to allow for the termination of CIRP when a settlement

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**Application:** In this case, the settlement between the Operational Creditor and SCM Garments

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## Parties

- **Judges:** S. Ramath…; SAMEER…
- **Respondents:** SCM Garments Pvt…; K.J. V…

## Timeline

- **2018-01-01 — CP/1118/IB/201…**: CP/1118/IB/2018 was…
- **2021-12-17 — CIRP Commen…**: CIRP commenced in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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