# In the matter of T. R. chemicals  Ltd. TP No. 11-CTB-2019, CA (IB) No. 15 & 16 CTB-2019 in CP (IB) No. 575-KB-2018

> NCLT judgment dated 2019-04-22. Citation: TCN-2019-NCLT-03819. The case involves M/s Rajgangpur Ispat Udyog Vs M/s T. R. Chemicals Ltd. The corporate debtor…

- **Court:** NCLT
- **Order date:** 22 Apr 2019
- **Citation:** TCN-2019-NCLT-03819
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/t-r-chemicals-ltd-tp-no-11-ctb-2019-ca-ib-no-15-16-ctb-2019-in-cp-ib-no-575-kb-2-0824ea26

## Summary

### Background

The case involves M/s Rajgangpur Ispat Udyog Vs M/s T. R. Chemicals Ltd. The corporate debtor was admitted into CIRP by order dated April 8, 2019. However, no Committee of Creditors was formed as the IRP did not receive any claim. The parties settled the dispute, and the Operational Creditors filed an application for withdrawal of the application under Section 12A of the IBC. There is TP No. 11/CTB/2019 CA No. 16/CTB/2019 for withdrawal of application.

## Facts

M/s Rajgangpur Ispat Udyog initiated proceedings against M/s T. R. Chemicals Ltd. under Section 9 of the IBC. The corporate debtor, M/s T. R. Chemicals Ltd., was admitted into CIRP on April 8, 2019. However, no Committee of Creditors was formed because the IRP did not receive any claims. The parties then settled the dispute, leading the Operational Creditors to file an application for withdrawal under Section 12A of the IBC. The Tribunal considered this application, referencing the case of M/s Ashish Garodia Vs Impact Event Management & Ors. Ltd.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of CIRP under Section 12A of the IBC should be allowed given …

**Ratio:** Section 12A of the IBC allows for the withdrawal of CIRP applications under certain

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**Reasoning:** The court reasoned that since the parties had settled the dispute and the operational

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**Interpretation:** Section 12A provides a mechanism for CIRP withdrawal when a settlement is

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**Application:** Given the settlement between M/s Rajgangpur Ispat Udyog and M/s T. R. Chemicals

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## Parties

- **Judges:** Madan B.…
- **Appellants:** M/s Rajgangpur…
- **Respondents:** M/s T. R.…
- **Advocates:** Zeeshan H…; Akash M…; +3 more

## Timeline

- **2019-04-08 — Admission in…**: The Corporate Debtor was admitted into…
- **2019-04-22 — Hearing…**: Attendance-cum-order sheet of the…

## 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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