# In the matter of Sumangal Ispat Pvt. Ltd. CA(IB)No. 1746-KB-2019 in CP(IB)No. 209-KB-2019

> NCLT judgment dated 2019-12-18. Citation: TCN-2019-NCLT-00113. The case involves an application (CA(IB) No. 1746/KB/2019) filed by the Operational Creditor…

- **Court:** NCLT
- **Order date:** 18 Dec 2019
- **Citation:** TCN-2019-NCLT-00113
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sumangal-ispat-pvt-ltd-caibno-1746-kb-2019-in-cpibno-209-kb-2019-890d7b6f

## Summary

### Background

The case involves an application (CA(IB) No. 1746/KB/2019) filed by the Operational Creditor under Rule 11 of the NCLT Rules, 2016, seeking to record a settlement and withdraw the matter, as the dispute was settled outside the Tribunal. The Interim Resolution Professional (IRP) also appeared and confirmed the agreed fees and costs with the Operational Creditor.

## Facts

Maithan International initiated a Corporate Insolvency Resolution Process (CIRP) against Sumangal Ispat Pvt. Ltd. under Section 9 of the IBC. The Operational Creditor, Maithan International, filed CA(IB) No. 1746/KB/2019 seeking to record a settlement reached outside the Tribunal and to withdraw the CIRP application. The Interim Resolution Professional (IRP), Tapan Chakraborty, appeared before the court. The Operational Creditor had previously deposited Rs. 2,00,000/- into an escrow account as directed by the court order dated 2019-11-19. The IRP's fees and costs were agreed to be Rs. 1,75,000/-. The Operational Creditor sought the release of Rs. 1.75 Lakhs to the IRP and the refund of the remaining Rs. 25,000/-.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP based on a settlement reached outside the …

**Ratio:** Rule 11 of the NCLT Rules, 2016 allows for the recording of settlements and the

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**Reasoning:** The court acknowledged the settlement reached between the Operational Creditor and the

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**Interpretation:** Rule 11 provides a mechanism for parties to resolve disputes outside the formal

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**Application:** The court applied Rule 11 to the facts of the case, recognizing the settlement

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Respondents:** Sumangal Ispat…

## Timeline

- **2019-11-19 — Court Or…**: Operational Creditor directed to deposit…
- **2019-12-18 — Hearing…**: Hearing on the application for withdrawal of CIRP. IRP appears and submits fees and…

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