# In the matter of India Steel Works Limited

> NCLT judgment dated 2024-11-25. Citation: TCN-2024-NCLT-00179. The application IA/5498/2024 is preferred under Section 12A by the IRP of India Steel Works…

- **Court:** NCLT
- **Order date:** 25 Nov 2024
- **Citation:** TCN-2024-NCLT-00179
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/india-steel-works-limited-d8bd206a

## Summary

### Background

The application IA/5498/2024 is preferred under Section 12A by the IRP of India Steel Works Limited, seeking withdrawal of the Petition withdrawal of the CP. The Corporate Debtor (CD) was admitted to CIRP vide order dated 08.05.2024, which was stayed by the Hon'ble NCLAT vide order dated 22.05.2024. During the pendency of the appeal, the parties entered into a settlement agreement dated 02.09.2024, which is part of the record in the present application.

## Facts

Stecol International Private Limited filed a petition against India Steel Works Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor (India Steel Works Limited) was admitted into CIRP via an order dated 08.05.2024, which was subsequently stayed by NCLAT on 22.05.2024. During the pendency of the appeal, both parties entered into a settlement agreement on 02.09.2024. As per the settlement, the Corporate Debtor agreed to pay Rs. 2,06,54,089/-. The Operational Creditor (OC) confirmed that the entire CIRP cost has been paid.

## Issues and analysis

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

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

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**Reasoning:** The court reasoned that since the parties had entered into a settlement agreement, the

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**Interpretation:** Section 12A provides a mechanism for parties to resolve their disputes amicably

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**Application:** In this case, the court applied the principle of Section 12A by considering the

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## Parties

- **Judges:** Reeta K…; Madhu S…
- **Appellants:** Stecol Internation…
- **Respondents:** India Steel Works…

## Timeline

- **2024-05-08 — CIRP Admi…**: Corporate Debtor was…
- **2024-05-22 — NCLAT Stay…**: NCLAT stayed the CIRP…

## 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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