# In the matter of Wearit Global Ltd. CA(IB)1443-KB-2019 in CP (IB) No. 150-KB-2019

> NCLT judgment dated 2019-11-01. Citation: TCN-2019-NCLT-00754. CA(IB)No.1443/KB/2019 was filed by the IRP under Rule 11 of NCLT Rules for withdrawal of the CP…

- **Court:** NCLT
- **Order date:** 1 Nov 2019
- **Citation:** TCN-2019-NCLT-00754
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/wearit-global-ltd-caib1443-kb-2019-in-cp-ib-no-150-kb-2019-da1aff4e

## Summary

### Background

CA(IB)No.1443/KB/2019 was filed by the IRP under Rule 11 of NCLT Rules for withdrawal of the CP as the matter was settled between the parties. The Corporate Debtor was already admitted into CIRP, but the CoC was yet to be formed.

## Facts

Victoria Glass Works Pvt. Ltd. initiated a Corporate Insolvency Resolution Process (CIRP) against Wearit Global Ltd. under Section 7 of the IBC. The Corporate Debtor was admitted into CIRP, but the Committee of Creditors (CoC) was yet to be formed. Subsequently, CA(IB)No.1443/KB/2019 was filed by the Interim Resolution Professional (IRP) under Rule 11 of NCLT Rules for withdrawal of the CP as the matter was settled between the parties. The key fact is the settlement between the parties after the initiation of CIRP but before the formation of the CoC, leading to the application for withdrawal.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) should …

**Ratio:** The legal principle is that settlements between parties are encouraged, especially in

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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:** This issue involves the interpretation of Rule 11 of NCLT Rules and the overall

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**Application:** In this case, the court applied the principle of encouraging settlements by

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Respondents:** Wearit Glob…; Victoria Glass…
- **Advocates:** Udil Ag…; CA Uma Ko…; +7 more

## Timeline

- **2019-11-01 — Hearing…**: Hearing held on 1st…

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