# In the matter of Trivandrum Spinning Mills Limited MA No.3-KOB-2019 in TIBA-4-KOB-2019

> NCLT judgment dated 2019-10-11. Citation: TCN-2019-NCLT-01034. The case involves MA No.3/KOB/2019 in TIBA/4/KOB/2019, filed by the Interim Resolution…

- **Court:** NCLT
- **Order date:** 11 Oct 2019
- **Citation:** TCN-2019-NCLT-01034
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/trivandrum-spinning-mills-limited-ma-no3-kob-2019-in-tiba-4-kob-2019-9fe2873a

## Summary

### Background

The case involves MA No.3/KOB/2019 in TIBA/4/KOB/2019, filed by the Interim Resolution Professional (IRP), Mr. CA George Varkey, appointed by the Tribunal. The petitioner, Mr. G.Sivakumar, authorized by Smt. Lalitha Maheshwari of M/s PSG Traders, sought withdrawal of the application. TIBA/4/KOB/2019 was admitted on 25.9.2019, and Mr. George Varkey was appointed as IRP. The parties settled the dispute with the Corporate Debtor and submitted Form FA on 5.10.2019 for filing before the Tribunal. The Insolvency Resolution Process started on 25.9.2019, and the Committee of Creditors was not constituted.

## Facts

M/s PSG Traders initiated insolvency proceedings against Trivandrum Spinning Mills Limited. Mr. CA George Varkey was appointed as the Interim Resolution Professional (IRP). The IRP filed MA No.3/KOB/2019 in TIBA/4/KOB/2019. The petitioner, Mr. G.Sivakumar, representing M/s PSG Traders, sought to withdraw the application. The parties reached a settlement where the Corporate Debtor agreed to pay Rs. 15,00,000 out of a due amount of Rs. 15,86,295. Rs. 5,00,000 was paid by cheque on 4.10.2019, and a cheque dated 14.10.2019 for Rs. 10,00,000 was given. The applicant submitted Form FA on 5.10.2019 to the IRP for withdrawal of the CIRP process. The IRP had received Rs. 2,00,000 towards costs and refunded Rs. 1,16,195 after covering expenses. The Committee of Creditors was not

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP process should be approved given the settlement …

**Ratio:** Regulation 30A (1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution

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**Reasoning:** The Tribunal considered the settlement reached between the parties, the submission of

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**Interpretation:** Regulation 30A (1) provides a mechanism for parties to settle their disputes

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**Application:** The Tribunal applied Regulation 30A (1) to the facts of the case, where the

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## Parties

- **Judges:** Veera Brahma Rao…; Ashok Kumar…
- **Appellants:** M/s PSG T…
- **Respondents:** Trivandrum…

## Timeline

- **2019-09-25 — Admission of TIBA/4/KOB/…**: TIBA/4/KOB/2019 was admitted, and Mr. George Varkey was appointed as the Interim…
- **2019-09-25 — Commencement of…**: The Insolvency…

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