# In the matter of S.P.M. (India) Pvt. Ltd. IA 640 of 2019 in  C.P.(IB) No. 101-BB-2019

> NCLT judgment dated 2019-12-10. Citation: TCN-2019-NCLT-00264. M/s.SMC Corporation (India) Private Limited filed C.P.(IB)No.101/BB/2019 under Section 9 of the…

- **Court:** NCLT
- **Order date:** 10 Dec 2019
- **Citation:** TCN-2019-NCLT-00264
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/spm-india-pvt-ltd-ia-640-of-2019-in-cpib-no-101-bb-2019-0a50ce99

## Summary

### Background

M/s.SMC Corporation (India) Private Limited filed C.P.(IB)No.101/BB/2019 under Section 9 of the IBC, 2016, seeking to initiate CIRP against M/s.SPM (India) Limited due to a default of Rs.62,37,652/-. The Adjudicating Authority admitted the case on 05.11.2019, initiating CIRP and appointing Ms. Sumana Rao as the Interim Resolution Professional (IRP). Subsequently, I.A.No.640 of 2019 was filed seeking to withdraw the Company Petition, as the issue had been settled between the parties.

## Facts

M/s.SMC Corporation (India) Private Limited, the Operational Creditor, initiated CIRP against M/s.SPM (India) Limited, the Corporate Debtor, due to a default of Rs.62,37,652/-. The NCLT admitted the case on 05.11.2019 and appointed Ms. Sumana Rao as the IRP. The IRP made public announcements and visited the Corporate Debtor's office but faced difficulties in accessing financial records. The Corporate Debtor and Operational Creditor subsequently entered into a settlement agreement dated 05.12.2019, where the Corporate Debtor agreed to pay Rs.46,17,000/- in full and final settlement. The settlement involved immediate payment of Rs.10,00,000/- and the balance through post-dated cheques. The Operational Creditor agreed to withdraw all cases against the Respondent,

…

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Company Petition C.P.(IB)No.101/BB/2019 under Section …

**Ratio:** Section 12A of the IBC, 2016, allows for the withdrawal of an application admitted under

…

**Reasoning:** The court considered the settlement agreement between the Operational Creditor and the

…

**Interpretation:** Section 12A of the IBC provides a mechanism for parties to settle their

…

**Application:** In this case, the Operational Creditor and Corporate Debtor reached a

…

## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Respondents:** M/s.SPM (India)…

## Timeline

- **2019-11-05 — Admission o…**: Adjudicating Authority admitted the case by order dated 05.11.2019, initiating CIRP and…
- **2019-11-14 — Public Annou…**: Interim Resolution Professional made the public announcements on 14.11.2019 under the…

## 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/spm-india-pvt-ltd-ia-640-of-2019-in-cpib-no-101-bb-2019-0a50ce99