# In the matter of Shree Murugan Flour Mills Pvt. Ltd. IA-(IB)-245-2020 in CP-636-IB-2019

> NCLT judgment dated 2020-02-28. Citation: TCN-2020-NCLT-01766. The case involves an application to withdraw a company petition (CP/636/IB/2019) after a…

- **Court:** NCLT
- **Order date:** 28 Feb 2020
- **Citation:** TCN-2020-NCLT-01766
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-murugan-flour-mills-pvt-ltd-ia-ib-245-2020-in-cp-636-ib-2019-62b1c0f5

## Summary

### Background

The case involves an application to withdraw a company petition (CP/636/IB/2019) after a settlement was reached between the parties subsequent to the admission of the petition and the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The settlement was formalized through a Memorandum of Compromise on 22.02.2020. The IRP was informed of the settlement before the application for withdrawal was filed.

## Facts

A company petition (CP/636/IB/2019) was filed, leading to the initiation of CIRP against a Corporate Debtor. Subsequently, the parties reached a settlement and entered into a Memorandum of Compromise on 22.02.2020. An application was filed to withdraw the company petition. The IRP was informed of the settlement. The IRP filed a report stating that the CoC had been constituted, comprising Asset Recovery Management Branch, Indian Overseas Bank and Indian Overseas Bank, Large Corporate Branch. The Operational Creditor communicated to the IRP to proceed with the application under Section 12-A of IBC, 2016, for withdrawal. The IRP's report on the constitution of the CoC was received on 24.02.2020 at 15.11 P.M., after the e-mail communication from the Operational Creditor.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the company petition should be allowed given the …

**Ratio:** The tribunal has inherent powers under Rule 11 of NCLT Rules, 2016, and considers the

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**Reasoning:** The tribunal considered the settlement between the parties, the communication to the IRP,

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**Interpretation:** The tribunal interprets Rule 11 of NCLT Rules, 2016, and Section 12-A of IBC,

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**Application:** The ratio and reasoning are applied to the specific facts of the case,

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** G. Balasubr…
- **Respondents:** SHREE MURUGAN…; MRS.RAJASHREE…

## Timeline

- **2020-02-22 — Memorandum of C…**: Parties entered into a…
- **2020-02-24 — IRP Repo…**: IRP report regarding constitution…

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