# 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-00114. 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-00114
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sumangal-ispat-pvt-ltd-caibno-1746-kb-2019-in-cpibno-209-kb-2019-f56c2326

## 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 it was settled out of the Tribunal. The Interim Resolution Professional (IRP) also appeared and confirmed the agreed fees and costs with the Operational Creditor.

## Facts

Maithan International filed an application against Sumangal Ispat Pvt. Ltd. under Section 9 of the IBC. The Operational Creditor and Corporate Debtor reached a settlement outside the Tribunal. The Operational Creditor filed CA(IB) No. 1746/KB/2019 under Rule 11 of the NCLT Rules, 2016, seeking to record the settlement and withdraw the matter. The IRP, Tapan Chakraborty, appeared and confirmed that his fees and costs, as agreed by the Operational Creditor, amounted to Rs. 1,75,000/-. An earlier order dated 2019-11-19 directed the Operational Creditor to deposit Rs. 2,00,000/- in the Escrow Account, which was duly deposited. The court released Rs. 1.75 Lakhs to the IRP and directed the refund of the balance Rs. 25,000/- to the Operational Creditor.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the case can be allowed based on the settlement reached …

**Ratio:** When parties reach a settlement outside the Tribunal, the court can allow the withdrawal

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

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**Interpretation:** This interpretation aligns with the objective of the IBC to facilitate

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**Application:** In this case, the Operational Creditor filed an application for withdrawal

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## Parties

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

## Timeline

- **2019-11-19 — Order for D…**: Operational Creditor directed to deposit…
- **2019-12-18 — Hearing…**: Hearing held on December 18, 2019, where the settlement was recorded, and the withdrawal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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