# In the matter of Sri Lakshmi Srinivasa Jute Mills Private Limited TCP (IB) No. 90-9-aMR-2019 CP (IB) No. 232-9-HDB-2019

> NCLT judgment dated 2019-11-22. Citation: TCN-2019-NCLT-00496. The case involves a company petition filed under the Insolvency and Bankruptcy Code. The…

- **Court:** NCLT
- **Order date:** 22 Nov 2019
- **Citation:** TCN-2019-NCLT-00496
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-lakshmi-srinivasa-jute-mills-private-limited-tcp-ib-no-90-9-amr-2019-cp-ib-n-d06532e9

## Summary

### Background

The case involves a company petition filed under the Insolvency and Bankruptcy Code. The Petitioner/Operational Creditor and the Respondent/Corporate Debtor have amicably settled the matter out of court. The Authority had admitted the Company Petition and appointed an IRP, but the IRP has not taken any steps in furtherance of the CIRP, and the Committee of Creditors has not been constituted.

## Facts

Mr. Khetulal Pugalia, Karta of M/s Khetulal Pugalia and Sons (HUF), filed a company petition against M/s Sri Lakshmi Srinivasa Jute Mills Private Limited. The petition was initially admitted, and an Interim Resolution Professional (IRP) was appointed. However, no steps were taken to further the Corporate Insolvency Resolution Process (CIRP), and the Committee of Creditors (CoC) was not constituted. Subsequently, the Petitioner (Operational Creditor) and the Respondent (Corporate Debtor) reached an amicable settlement out of court and jointly filed a memo seeking withdrawal of the application. The court accepted the memo, considering it appropriate not to proceed with CIRP given the settlement.

## Issues and analysis

### Issue 1: Whether the Company Petition can be dismissed as withdrawn under Section 12(A) of the Insolvency …

**Ratio:** Section 12(A) of the Insolvency and Bankruptcy Code allows for the withdrawal of an

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**Reasoning:** The court reasoned that since the matter was already settled between the parties, it

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**Interpretation:** Section 12(A) provides a mechanism for withdrawal of insolvency applications

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**Application:** Given the amicable settlement between the Petitioner (Operational Creditor) and

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## Parties

- **Judges:** Janab Mohammed…
- **Appellants:** Mr Khetulal…
- **Respondents:** M/s Sri Lakshmi…

## Timeline

- **2019-11-19 — Admission of Company…**: The Authority admitted the Company…
- **2019-11-22 — Dismissal of Company…**: The Company Petition was dismissed as withdrawn following an out-of-court settlement…

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