# In the matter of Kerala State Electronics Development Corporation Limited CP(IB)-24-KOB-2021

> NCLT judgment dated 2022-01-31. Citation: TCN-2022-NCLT-04318. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 31 Jan 2022
- **Citation:** TCN-2022-NCLT-04318
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kerala-state-electronics-development-corporation-limited-cpib-24-kob-2021-97cab74b

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Nevaeh Technology Private Limited (Operational Creditor) against Kerala State Electronics Development Corporation Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The application was admitted on 21.01.2022, and a moratorium was declared under Section 14(1) of the IBC 2016. Subsequently, the parties entered into a settlement agreement on 26.01.2022.

## Facts

Nevaeh Technology Private Limited, the Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Kerala State Electronics Development Corporation Limited, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was admitted on 21.01.2022, leading to a moratorium. Prior to the order, the parties entered into a settlement agreement on 26.01.2022, wherein Keltron agreed to pay Rs. 1,27,55,150 in two installments and Rs. 2 lakhs out of Rs. 20,60,755. Nevaeh agreed to waive the interest portion of the claim. Keltron made a payment of Rs. 65,77,575 and provided a post-dated cheque for Rs. 63,77,575. Keltron also undertook to pay Rs. 18,60,755 upon receipt of funds from Kolkata Police. Nevaeh confirmed

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 can be …

**Ratio:** The legal principle is that a CIRP application can be withdrawn if the parties reach a

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**Reasoning:** The Tribunal considered the settlement agreement reached between the parties, which

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**Interpretation:** The interpretation is that the IBC allows for settlement between parties even

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**Application:** In this case, the Operational Creditor and the Corporate Debtor reached a

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## Parties

- **Judges:** Ashok Kumar…; Anil Ku…
- **Respondents:** KERALA STATE…
- **Advocates:** Merin Tha…; Pranoy Ha…

## Timeline

- **2022-01-21 — Admission of Ap…**: The Tribunal admitted the application No. CP(IB)/24/KOB/2021 and declared a moratorium…
- **2022-01-26 — Settlement Ag…**: The parties entered into…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14(1) — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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