# In the matter of Kandoi Metal Powders Manufacturing Co. Pvt. Ltd.

> NCLT judgment dated 2024-01-25. Citation: TCN-2024-NCLT-02917. The case involves an application under Section 12A of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 25 Jan 2024
- **Citation:** TCN-2024-NCLT-02917
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kandoi-metal-powders-manufacturing-co-pvt-ltd-9db28bdf

## Summary

### Background

The case involves an application under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 30A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process of Corporate Persons) Regulations, 2016, and Rule 11 of the NCLT Rules, 2016. An application under Section 9 of the IBC, 2016, bearing CP No. (IB)-15/9/JPR/2021, filed by Airen Metals Pvt. Ltd. against Kandoi Metal Powders Manufacturing Co. Pvt. Ltd., was admitted by the Adjudicating Authority on 19.01.2024, and Ms. Pratibha Khandelwal was appointed as the Interim Resolution Professional (IRP). The Operational Creditor (Airen Metals Pvt. Ltd.) and the Corporate Debtor (Kandoi Metal Powders Manufacturing Co. Pvt. Ltd.) entered into a settlement.

## Facts

Airen Metals Pvt. Ltd., the Operational Creditor, filed an application under Section 9 of the IBC, 2016, against Kandoi Metal Powders Manufacturing Co. Pvt. Ltd., the Corporate Debtor. The application was admitted on 19.01.2024, and Ms. Pratibha Khandelwal was appointed as the IRP. Subsequently, the Operational Creditor and the Corporate Debtor entered into a settlement, executing a settlement deed on 21.01.2024, agreeing to pay the entire claim amount of Rs. 4,00,06,142/- by the Corporate Debtor. Rs. 1 crore has already been paid by the Corporate Debtor to the Operational Creditor and for remaining amount of Rs. 3 crores, three Post Date Cheques (PDC) have been issued to the Operational Creditor. The Chairman of the Monitoring Committee submitted that the settlement

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## Issues and analysis

### Issue 1: Whether the application under Section 12A of the IBC, 2016, for withdrawal of the CIRP should be …

**Ratio:** Section 12A of the IBC, 2016, allows for the withdrawal of an application admitted under

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**Reasoning:** The court considered the settlement deed executed between the Operational Creditor and

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**Interpretation:** Section 12A provides a mechanism for parties to settle their disputes and

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**Application:** In this case, the court applied Section 12A and allowed the withdrawal of the

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Airen Metals Pvt.…
- **Respondents:** Kandoi Metal…

## Timeline

- **2021-09-01 — CP No. (IB)-15/9/JPR/202…**: Application u/s 9 of IBC, 2016 bearing CP No. (IB)-15/9/JPR/2021 filed by M/s Airen…
- **2024-01-19 — Application A…**: Application u/s 9 of IBC, 2016 bearing CP No. (IB)-15/9/JPR/2021 filed by M/s Airen…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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