# In the matter of T.C. Terrytex Ltd. CA No. 14-2018 in CP (IB) No. 124-Chd-Pb-2017

> NCLT judgment dated 2018-01-23. Citation: TCN-2018-NCLT-01910. The corporate debtor filed an application under Sections 60(5)(a) and 60(5)(c) of the…

- **Court:** NCLT
- **Order date:** 23 Jan 2018
- **Citation:** TCN-2018-NCLT-01910
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/tc-terrytex-ltd-ca-no-14-2018-in-cp-ib-no-124-chd-pb-2017-9e61d1a7

## Summary

### Background

The corporate debtor filed an application under Sections 60(5)(a) and 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, seeking release from the resolution process. The operational creditor had filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, which was admitted on 08.01.2018, leading to the declaration of a moratorium and the appointment of an Interim Resolution Professional (IRP). The matter was taken up because the operational creditor settled with the corporate debtor and no other claims were received.

## Facts

Kamal Chemicals, an operational creditor, initiated insolvency proceedings against T.C. Terrytex Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 08.01.2018, leading to a moratorium and the appointment of Sanjay Kumar Aggarwal as the Interim Resolution Professional (IRP). Subsequently, the corporate debtor filed an application under Sections 60(5)(a) and 60(5)(c) of the IBC seeking release from the resolution process, stating that the matter with the operational creditor had been settled. The IRP submitted reports and stated that no other claims were received. The operational creditor confirmed that their claim had been fully satisfied, including reimbursement of the IRP's fees. Financial creditors

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## Issues and analysis

### Issue 1: Whether the application filed by the corporate debtor for release from the insolvency resolution …

**Ratio:** When an operational creditor settles their claim with the corporate debtor and no other

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**Reasoning:** The court reasoned that since the operational creditor, who initiated the insolvency

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**Interpretation:** This interprets the IBC to allow for the termination of insolvency proceedings

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** R.P.Nag…
- **Appellants:** Kamal Che…
- **Respondents:** M/s T.C. Terrytex…

## Timeline

- **2018-01-08 — Admission of…**: The petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by the…
- **2018-01-15 — First Weekly…**: The Interim Resolution Professional filed the first weekly report regarding compliances…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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