# In the matter of Bhagatpur Tea Co. Limited IA(I.B.C)-970(KB)2022 in C.P. (IB)-617(KB)2020

> NCLT judgment dated 2022-09-12. Citation: TCN-2022-NCLT-01089. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Bhagatpur…

- **Court:** NCLT
- **Order date:** 12 Sept 2022
- **Citation:** TCN-2022-NCLT-01089
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhagatpur-tea-co-limited-iaibc-970kb2022-in-cp-ib-617kb2020-f2180e39

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against Bhagatpur Tea Company Limited. The CIRP was ordered on September 5, 2022, and an Interim Resolution Professional (IRP) was appointed. However, before the Committee of Creditors (CoC) could be constituted, the parties reached a settlement, and the Suspended Director filed an application to recall the order initiating CIRP.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Bhagatpur Tea Company Limited on September 5, 2022. An Interim Resolution Professional (IRP) was appointed. Before the Committee of Creditors (CoC) could be formed, the involved parties reached a settlement. The Suspended Director then filed an application to recall the order initiating the CIRP. The court noted that the CoC had not been constituted. The parties' settlement is a key fact influencing the court's decision to allow the application and dismiss the CIRP.

## Issues and analysis

### Issue 1: Whether the application for recalling the CIRP order should be allowed given the settlement between …

**Ratio:** Rule 11 of NCLT Rules allows the court to consider settlements between parties,

…

**Reasoning:** The court reasoned that since the parties had settled before the CoC was formed, and in

…

**Interpretation:** This interpretation suggests that NCLT Rules provide flexibility to consider

…

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

…

## Parties

- **Judges:** RohitKa…; Balraj…
- **Respondents:** Bhagatpur Tea…; Savitri Entterpris…
- **Advocates:** Shaunak…; Satyajit Ch…; +6 more

## Timeline

- **2022-09-05 — CIRP Ord…**: The CIRP was ordered against Bhagatpur Tea…
- **2022-09-12 — Hearing…**: Hearing on the matter was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhagatpur-tea-co-limited-iaibc-970kb2022-in-cp-ib-617kb2020-f2180e39