# In the matter of Globe Steel And Alloys Private Limited

> NCLT judgment dated 2025-01-31. Citation: TCN-2025-NCLT-00543. The case involves an application for withdrawal of the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 31 Jan 2025
- **Citation:** TCN-2025-NCLT-00543
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/globe-steel-and-alloys-private-limited-62ed2cbc

## Summary

### Background

The case involves an application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) initiated under Section 9 of the Insolvency and Bankruptcy Code (IBC) against Globe Steel and Alloys Private Limited. The CIRP was initiated by Ganpati Enterprises, the Operational Creditor. The application for withdrawal is based on a Memorandum of Understanding (MoU) entered into between the Corporate Debtor and the Operational Creditor, outlining a payment agreement for settling the debt. The Committee of Creditors (CoC), consisting of a single member (SIDBI), approved the withdrawal application in its second meeting.

## Facts

Ganpati Enterprises, the Operational Creditor, initiated CIRP against Globe Steel and Alloys Private Limited, the Corporate Debtor, under Section 9 of the IBC. The total debt owed by the Corporate Debtor to the Operational Creditor is Rs. 1,57,07,318.74. A Memorandum of Understanding (MoU) was entered into between the Corporate Debtor and the Operational Creditor to settle the debt. The purpose of the MoU was to outline the terms of the payment agreement. The CoC, consisting of a single member, Small Industries Development Bank of India (SIDBI), approved the withdrawal application in its second meeting held on January 20, 2025. The Operational Creditor filed Form FA, an application for withdrawal of the CIRP, on January 14, 2025. The preliminary expenses of Rs.

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the CIRP under Section 12A of the IBC read with …

**Ratio:** Section 12A of the IBC, read with Regulation 30A of the CIRP Regulations, allows for the

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**Reasoning:** The Adjudicating Authority considered the MoU between the parties, the approval of the

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP proceedings when the

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**Application:** In this case, the Corporate Debtor and the Operational Creditor entered into an

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## Parties

- **Judges:** BIDISHA BA…; SAMEER…
- **Appellants:** Ganpati Enterprise…
- **Respondents:** Globe Steel and…

## Timeline

- **2025-01-09 — MoU Ente…**: A Memorandum of Understanding (MoU) was entered into between the Corporate Debtor and…
- **2025-01-10 — Payment of E…**: Preliminary expenses of Rs. 3,00,000/- were paid to the bank account of the IRP by 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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