# In the matter of Todi Tea Co. Limited CA(IB) No. 1431-KB-2019 in CP(IB) No. 620-KB-2018

> NCLT judgment dated 2019-10-31. Citation: TCN-2019-NCLT-00775. The case involves an application for withdrawal of a corporate insolvency resolution process…

- **Court:** NCLT
- **Order date:** 31 Oct 2019
- **Citation:** TCN-2019-NCLT-00775
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/todi-tea-co-limited-caib-no-1431-kb-2019-in-cpib-no-620-kb-2018-9574631b

## Summary

### Background

The case involves an application for withdrawal of a corporate insolvency resolution process (CIRP) application filed under Rule 11 of the NCLT Rules. The application for withdrawal, CA(IB) 1431/KB/2019, was filed due to a settlement between the parties.

## Facts

The key facts are as follows: An application, CA(IB) 1431/KB/2019, was filed for the withdrawal of a CIRP application under Rule 11 of the NCLT Rules. The basis for the withdrawal was a settlement reached between the parties involved in the CIRP. The representatives of the operational creditor (Pr. CS), the corporate debtor (Pr. CS), and the Interim Resolution Professional (IRP) appeared before the court. The court reviewed the application and heard the arguments presented by the representatives. The parties having settled the dispute is the primary reason for the withdrawal application. The relevance of these facts is that they demonstrate the process by which a CIRP can be terminated before a resolution plan is approved, specifically through a settlement between the

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP application, CA(IB) 1431/KB/2019, should be …

**Ratio:** The legal principle applied is that if parties involved in a CIRP reach a settlement, the

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**Reasoning:** The court reasoned that since the parties had settled the dispute, it was appropriate to

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**Interpretation:** The interpretation is that Rule 11 of the NCLT Rules allows for the withdrawal

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**Application:** In this specific case, the representatives of the operational creditor,

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Respondents:** Todi Tea Co.…

## Timeline

- **2019-10-31 — Hearing…**: Hearing held on October…
- **2019-10-31 — Order Da…**: Order issued granting permission…

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