# In the matter of Shankar Ferro Alloys Pvt. Ltd. CA(IB)1389-KB-2019 in CP(IB)No. 704-KB-2019

> NCLT judgment dated 2019-10-24. Citation: TCN-2019-NCLT-00832. The case involves Neo Carbons Pvt. Ltd. versus Shankar Ferro Alloys Pvt. Ltd. CA(IB)…

- **Court:** NCLT
- **Order date:** 24 Oct 2019
- **Citation:** TCN-2019-NCLT-00832
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shankar-ferro-alloys-pvt-ltd-caib1389-kb-2019-in-cpibno-704-kb-2019-69629621

## Summary

### Background

The case involves Neo Carbons Pvt. Ltd. versus Shankar Ferro Alloys Pvt. Ltd. CA(IB) 1389/KB/2019 was filed by the Ld. Counsel for the operational creditor under section 12A of IBC stating that both parties settled the matter.

## Facts

Neo Carbons Pvt. Ltd. filed a case against Shankar Ferro Alloys Pvt. Ltd. CA(IB) 1389/KB/2019 was filed by the operational creditor under section 12A of the IBC, stating that both parties had settled the matter. The CoC was not formed. The corporate debtor was admitted into CIRP. The operational creditor was allowed to withdraw the matter under rule 11 of NCLT Rules. The Resolution Professional (RP) confirmed that his fees and costs had been paid.

## Issues and analysis

### Issue 1: Whether the operational creditor can be allowed to withdraw the matter after the corporate debtor …

**Ratio:** When parties have settled a matter, and the CoC is not formed, the operational creditor

…

**Reasoning:** The court considered the settlement between the parties and the fact that the CoC was not

…

**Interpretation:** Section 12A of the IBC allows for withdrawal of applications under certain

…

**Application:** The court applied the principle that settlement between parties is a valid

…

## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Neo Carbons Pvt.…
- **Respondents:** Shankar Ferro…

## Timeline

- **2019-10-24 — Hearing…**: Hearing held on 24th…

## 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)

---

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/shankar-ferro-alloys-pvt-ltd-caib1389-kb-2019-in-cpibno-704-kb-2019-69629621