# In the matter of Shakambari Rubber Pvt.  Ltd. IA(IB) No. 294-KB-2020 in CP(IB) No. 621-KB-2019

> NCLT judgment dated 2020-02-19. Citation: TCN-2020-NCLT-01901. The case involves Corporation Bank as the Financial Creditor and Shakambari Rubber Pvt. Ltd.…

- **Court:** NCLT
- **Order date:** 19 Feb 2020
- **Citation:** TCN-2020-NCLT-01901
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shakambari-rubber-pvt-ltd-iaib-no-294-kb-2020-in-cpib-no-621-kb-2019-5fccb498

## Summary

### Background

The case involves Corporation Bank as the Financial Creditor and Shakambari Rubber Pvt. Ltd. The Financial Creditor filed an application (IA (IB) No. 294/KB/2020) under Rule 11 of the NCLT Rules, 2016, seeking permission to withdraw the Corporate Insolvency Resolution Process (CIRP) application (CP (IB) No. 621/KB/2019) due to a settlement between the parties. The application was considered by the National Company Law Tribunal (NCLT), Kolkata Bench.

## Facts

Corporation Bank initiated a Corporate Insolvency Resolution Process (CIRP) against Shakambari Rubber Pvt. Ltd. under Section 7 of the IBC. Subsequently, Corporation Bank filed IA (IB) No. 294/KB/2020 seeking to withdraw the CIRP application, CP (IB) No. 621/KB/2019, due to a settlement reached between the parties. The Interim Resolution Professional (IRP) did not appear during the hearing. The Financial Creditor's counsel assured the tribunal that the fees and costs of the IRP would be settled within a week. The NCLT, being satisfied with the settlement, permitted the withdrawal of the CIRP application.

## Issues and analysis

### Issue 1: Whether the Financial Creditor can withdraw the CIRP application based on a settlement reached with …

**Ratio:** A Financial Creditor can withdraw a CIRP application if a settlement is reached with the

…

**Reasoning:** The NCLT considered the settlement between the parties and the Financial Creditor's

…

**Interpretation:** The interpretation of the IBC and NCLT Rules allows for the withdrawal of a

…

**Application:** In this case, the Financial Creditor, Corporation Bank, reached a settlement

…

## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Corporatio…
- **Respondents:** Shakambari Rubber…

## Timeline

- **2020-02-19 — Hearing…**: Hearing on IA (IB) No. 294/KB/2020 for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

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/shakambari-rubber-pvt-ltd-iaib-no-294-kb-2020-in-cpib-no-621-kb-2019-5fccb498