# In the matter of Howrah Mills Co. Limited C.P. (IB)-2194(KB)2019

> NCLT judgment dated 2022-07-05. Citation: TCN-2022-NCLT-01882. The case pertains to a Corporate Insolvency Resolution Process (CIRP) application filed under…

- **Court:** NCLT
- **Order date:** 5 Jul 2022
- **Citation:** TCN-2022-NCLT-01882
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/howrah-mills-co-limited-cp-ib-2194kb2019-e735c082

## Summary

### Background

The case pertains to a Corporate Insolvency Resolution Process (CIRP) application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Financial Creditor sought initiation of CIRP against the Corporate Debtor. The matter was listed before the National Company Law Tribunal (NCLT), Kolkata Bench.

## Facts

IK Agencies Private Limited filed a Corporate Insolvency Resolution Process (CIRP) application against Howrah Mills Co Limited under Section 7 of the IBC. During the proceedings, the Authorised Representative for the Financial Creditor submitted that the matter had been settled, and the Corporate Debtor had paid the total amount of dues to the Financial Creditor in full. Consequently, the Financial Creditor sought permission to withdraw the CIRP application. The NCLT noted the settlement and the payment of dues.

## Issues and analysis

### Issue 1: Whether the Financial Creditor can withdraw the Corporate Insolvency Resolution Process (CIRP) …

**Ratio:** A Financial Creditor can withdraw a CIRP application if the Corporate Debtor settles the

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**Reasoning:** The court reasoned that since the dues had been settled, the purpose of initiating CIRP

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**Interpretation:** This interpretation aligns with the objective of the IBC, which is to

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**Application:** In this case, the Financial Creditor's representative submitted that the

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## Parties

- **Judges:** RohitKa…; Harish Chander…
- **Appellants:** IK AGENCIES…
- **Respondents:** HOWRAH MILLS CO…
- **Advocates:** Dhirendra Nath…; A. Mukh…

## Timeline

- **2022-07-05 — Hearing…**: Attendance-cum-order sheet of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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