# In the matter of Sri Renga Creative Apparels India Pvt. Ltd. MA-103-IB-2018 IN TCP-527-IB-CB-2018

> NCLT judgment dated 2018-05-31. Citation: TCN-2018-NCLT-01350. The case involves an application filed in TCP/527/IB/17 seeking to recall the order dated…

- **Court:** NCLT
- **Order date:** 31 May 2018
- **Citation:** TCN-2018-NCLT-01350
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-renga-creative-apparels-india-pvt-ltd-ma-103-ib-2018-in-tcp-527-ib-cb-2018-73fded89

## Summary

### Background

The case involves an application filed in TCP/527/IB/17 seeking to recall the order dated 23.04.2018 based on a memorandum of compromise. The Corporate Insolvency Resolution (CIR) process was initiated against the Corporate Debtor, and an Interim Resolution Professional (IRP) was appointed. A public announcement was made, and claims were received. The first meeting of the Committee of Creditors (CoC) was convened. Settlement was reached between the Operational Creditor and the Corporate Debtor.

## Facts

On 23.04.2018, the CIR process was initiated against the Corporate Debtor, M/s. Sri Renga Creative Apparels India Pvt Ltd, based on an application by the Operational Creditor, Aruppukottai Sri Jeyavel Limited. An IRP was appointed, and a moratorium was declared. A public announcement was made on 27.04.2018, with the process set to expire on 18.05.2018. Two claims were received, one from the Operational Creditor and another from Corporation Bank. A settlement was reached between the Operational Creditor and the Corporate Debtor. Corporation Bank had no objection to the withdrawal of the CIR process because the Corporate Debtor's account was a 'standard account'. The Operational Creditor then filed an application for withdrawal of the CIR process.

## Issues and analysis

### Issue 1: Whether the order dated 23.04.2018 initiating the CIR process should be recalled based on the …

**Ratio:** When a settlement is reached between the Operational Creditor and the Corporate Debtor,

…

**Reasoning:** The court reasoned that since a settlement had been reached and the Corporation Bank,

…

**Interpretation:** This interprets the legal framework to allow for the withdrawal of CIR

…

**Application:** The court applied this principle by recalling the order dated 23.04.2018

…

## Parties

- **Judges:** Ch. Mohd Sharief…
- **Respondents:** RENGA CREATIVE…; ARUPPUKOTAI SRI…

## Timeline

- **2018-04-23 — CIR Process I…**: CIR process initiated against the Corporate Debtor based on the application of the…
- **2018-04-23 — Order Rec…**: The order dated 23.04.2018…

---

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/sri-renga-creative-apparels-india-pvt-ltd-ma-103-ib-2018-in-tcp-527-ib-cb-2018-73fded89