# In the matter of Desein Pvt. Ltd. IA-624-ND-2022 in IB-2697-ND-2019

> NCLT judgment dated 2022-02-07. Citation: TCN-2022-NCLT-04239. The case involves IA No. 622 to 624/ND/2022, which were moved on behalf of the Operational…

- **Court:** NCLT
- **Order date:** 7 Feb 2022
- **Citation:** TCN-2022-NCLT-04239
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/desein-pvt-ltd-ia-624-nd-2022-in-ib-2697-nd-2019-73e9fa35

## Summary

### Background

The case involves IA No. 622 to 624/ND/2022, which were moved on behalf of the Operational Creditor for withdrawal of insolvency proceedings. A CIRP order was previously initiated on 2022-01-28. An IRP was appointed, but the dues of all three petitioners have now been cleared. The CoC has not been constituted, and all three matters have been settled.

## Facts

Rajender Kumar filed an application against M/s Desein Pvt. Ltd. under Section 9 of the IBC. IA No. 622 to 624/ND/2022 were filed by the Operational Creditor for withdrawal of insolvency proceedings. A CIRP order was initiated on 2022-01-28. An IRP was appointed. The dues of all three petitioners were cleared. The CoC was not constituted. All three matters were settled. The RP's counsel confirmed that the dues had been cleared. The applications for withdrawal were allowed. The Corporate Debtor was relieved from CIRP rigors. The IRP was discharged from their duties.

## Issues and analysis

### Issue 1: Whether the applications for withdrawal of insolvency proceedings should be allowed given that the …

**Ratio:** The legal principle applied is that if the operational creditor's dues are cleared before

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**Reasoning:** The court reasoned that since the dues of all three petitioners were cleared and the CoC

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**Interpretation:** This interprets the IBC to allow for flexibility in cases where settlement is

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**Application:** In this specific case, the court applied the ratio by allowing the withdrawal

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## Parties

- **Judges:** DHARMINDER…; SUMITAPURKA…
- **Appellants:** Rajender…
- **Respondents:** M/s Desein Pvt.…

## Timeline

- **2022-01-28 — CIRP Order In…**: A CIRP order was initiated…
- **2022-02-07 — Order Del…**: The court delivered an order allowing the…

## 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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