# In the matter of India Steel Works Limited IA 1491-2023 in C.P. (IB) 161(MB)2022

> NCLT judgment dated 2023-05-04. Citation: TCN-2023-NCLT-03472. The case involves an application (IA No. 1491/2023) filed by the Financial Creditor under…

- **Court:** NCLT
- **Order date:** 4 May 2023
- **Citation:** TCN-2023-NCLT-03472
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/india-steel-works-limited-ia-1491-2023-in-cp-ib-161mb2022-14e9fc9c

## Summary

### Background

The case involves an application (IA No. 1491/2023) filed by the Financial Creditor under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking withdrawal of the Company Petition. The Financial Creditor and the Corporate Debtor have entered into consent terms/settlement agreement.

## Facts

The Financial Creditor filed an application (IA No. 1491/2023) seeking to withdraw the Company Petition under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor and the Corporate Debtor entered into a settlement agreement. As per the agreement, the Corporate Debtor agreed to pay Rs. 77,37,527/- to the Financial Creditor as full and final settlement of all disputes. This settlement led the court to consider the matter as resolved and allow the withdrawal of the Company Petition. The key fact is the settlement agreement, which prompted the Financial Creditor to seek withdrawal and the court to allow it.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Company Petition (C.P. (IB)/161(MB)2022) filed by the …

**Ratio:** The legal principle applied is that parties are free to settle their disputes, and courts

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**Reasoning:** The court reasoned that since the Financial Creditor and the Corporate Debtor had reached

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**Interpretation:** The interpretation is that Section 60(5) of the Insolvency and Bankruptcy Code,

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Shyam Babu…; Kuldip Kumar…
- **Appellants:** Kiran Kumar…
- **Respondents:** India Steel Works…
- **Advocates:** Shavez…; Chintan C…

## Timeline

- **2023-05-04 — Order Da…**: Order sheet of the hearing of Mumbai Bench…

## 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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