# In the matter of Surprise Steels Pvt. Ltd. IA-1241(KB)2020, IA-198 & 327(KB)2021 in C.P. (IB)-1674(KB)2018

> NCLT judgment dated 2021-04-16. Citation: TCN-2021-NCLT-02370. The case involves an application (IA 327/KB/2021) filed by the Operational Creditor for…

- **Court:** NCLT
- **Order date:** 16 Apr 2021
- **Citation:** TCN-2021-NCLT-02370
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/surprise-steels-pvt-ltd-ia-1241kb2020-ia-198-327kb2021-in-cp-ib-1674kb2018-5cf255b3

## Summary

### Background

The case involves an application (IA 327/KB/2021) filed by the Operational Creditor for withdrawal or recall of the order dated 16.01.2020, which initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The matter was previously appealed to the Appellate Tribunal (NCLAT). The NCLAT, in its order dated 16.02.2021 in Company Appeal AT(Insolvency) 280 of 2020, allowed an application filed by the appellant and disposed of the appeal, leading to the current application for withdrawal based on a settlement.

## Facts

The Operational Creditor filed an application (IA 327/KB/2021) seeking withdrawal or recall of the order dated 16.01.2020, which had initiated CIRP against Surprise Steels Pvt. Ltd. The case had previously been appealed to the NCLAT, which, vide order dated 16.02.2021 in Company Appeal AT(Insolvency) 280 of 2020, allowed an application filed by the appellant and disposed of the appeal. The Committee of Creditors (CoC) was not constituted due to interim orders passed by the NCLAT. The IRP confirmed receipt of the entire CIRP cost. A settlement was reached between the parties. The relevance of these facts lies in the court's decision to allow the withdrawal of the CIRP based on the settlement, the NCLAT's previous order, and the IRP's confirmation of payment.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP (IA 327/KB/2021) should be allowed given the …

**Ratio:** The legal principle applied is that settlements reached between parties in insolvency

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**Reasoning:** The court reasoned that since a settlement was reached between the parties and the IRP

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**Interpretation:** This interpretation emphasizes the court's willingness to facilitate

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**Application:** In this specific case, the settlement between the Operational Creditor and the

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** SURPRISE STEELS…

## Timeline

- **2020-01-16 — Order for Commencement…**: Order dated 16.01.2020 for commencement of…
- **2021-02-16 — NCLAT Or…**: Order dated 16.02.2021 in Company Appeal AT(Insolvency) 280 of 2020, where the NCLAT…

## 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)

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