# In the matter of Biltube Industries Ltd. IA 1707-2022 In C.P. (IB)-2939(MB)2018

> NCLT judgment dated 2022-06-24. Citation: TCN-2022-NCLT-02060. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 24 Jun 2022
- **Citation:** TCN-2022-NCLT-02060
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/biltube-industries-ltd-ia-1707-2022-in-cp-ib-2939mb2018-7f5bc86e

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) against Biltube Industries Limited. The CIRP was initiated following the admission of a petition against the Corporate Debtor. Subsequently, the Interim Resolution Professional (IRP) filed an application under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of the CIRP. This application was filed after the Operational Creditor and the Suspended Director of the Corporate Debtor entered into a settlement agreement.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Biltube Industries Limited after a petition was admitted. The Interim Resolution Professional (IRP), CA Ashok Mittal, was appointed. The IRP filed an application (IA No. 1707/2022) under Section 12A of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of the CIRP. This application was based on a settlement agreement between the Operational Creditor (IVAX Paper Chemicals Limited) and the Suspended Director of the Corporate Debtor. The settlement involved the payment of Rs. 1,00,00,000/- (Rupees One Crore) to the Operational Creditor. The IRP also made a publication in an English and Marathi newspaper inviting claims of various creditors of the Corporate Debtor. The court considered the

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## Issues and analysis

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

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of

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**Reasoning:** The court reasoned that the settlement agreement between the Operational Creditor and the

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**Interpretation:** Section 12A provides a mechanism for parties to settle their disputes and

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**Application:** In this case, the settlement agreement and the confirmation of payment

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## Parties

- **Judges:** Shyam Babu…; P.N. Des…
- **Respondents:** Biltube Industries…
- **Advocates:** Nausar…; Suvaaanko…; +1 more

## Timeline

- **2022-06-17 — Order Da…**: CIRP was initiated against the Corporate…
- **2022-06-20 — Publication in…**: Applicant made a publication in an English and Marathi newspaper on 20.06.2022, inviting…

## 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)

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