# In the matter of Kunj Forgings Pvt. Ltd. RST.A. 2--ALD-2022 in CP (IB) No. 20-ALD-2018

> NCLT judgment dated 2022-04-27. Citation: TCN-2022-NCLT-03039. The case involves a hearing before the National Company Law Tribunal (NCLT), Allahabad Bench,…

- **Court:** NCLT
- **Order date:** 27 Apr 2022
- **Citation:** TCN-2022-NCLT-03039
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kunj-forgings-pvt-ltd-rsta-2-ald-2022-in-cp-ib-no-20-ald-2018-dc8ab963

## Summary

### Background

The case involves a hearing before the National Company Law Tribunal (NCLT), Allahabad Bench, concerning RST. A 2/ALD/2022 and CP (IB) No.20/ALD/2018. Punjab National Bank is the financial creditor, and Kunj Forgings Pvt Ltd is the corporate debtor. The hearing took place on April 27, 2022.

## Facts

Punjab National Bank (PNB) initiated a Corporate Insolvency Resolution Process (CIRP) against Kunj Forgings Pvt Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC). The case was registered as CP (IB) No. 20/ALD/2018 and RST. A 2/ALD/2022. During the hearing on April 27, 2022, the counsel for PNB reported that a one-time settlement had been approved by the bank. Consequently, the NCLT dismissed the CIRP application as withdrawn and closed the related RST case. The key fact is the approval of a one-time settlement, which led to the withdrawal of the insolvency proceedings.

## Issues and analysis

### Issue 1: Whether the one-time settlement approved by Punjab National Bank warrants the dismissal of the …

**Ratio:** A financial creditor has the right to withdraw a CIRP application if a settlement is

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**Reasoning:** The court accepted the submission of the financial creditor's counsel that a one-time

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**Interpretation:** The legal interpretation is that a settlement between the financial creditor

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**Application:** In this case, the approval of the one-time settlement by Punjab National Bank

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## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Respondents:** Kunj Forgings Pvt…
- **Advocates:** O. P. M…; Abhishek Tr…; +2 more

## Timeline

- **2018-01-01 — CP (IB)…**: CP (IB) No. 20/ALD/2018…
- **2022-01-01 — RST. A F…**: RST. A 2/ALD/2022 was…

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