# In the matter of Maithan Ispat Limited

> NCLT judgment dated 2024-03-06. Citation: TCN-2024-NCLT-02175. Shark Mines & Minerals Private Limited, the Operational Creditor (OC), filed C.P. (IB)…

- **Court:** NCLT
- **Order date:** 6 Mar 2024
- **Citation:** TCN-2024-NCLT-02175
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/maithan-ispat-limited-c664ce01

## Summary

### Background

Shark Mines & Minerals Private Limited, the Operational Creditor (OC), filed C.P. (IB) No.1876/KB/2019 against Maithan Ispat Limited, the Corporate Debtor (CD), for initiation of Corporate Insolvency Resolution Process (CIRP). The C.P. (IB) No.1876/KB/2019 was filed for a total debt of Rs.9,53,02,840/-, including a principal debt of Rs.8,83,49,703/- and interest of Rs.69,53,137/- as of 2019-08-31. After negotiations, a settlement agreement was executed on 2021-09-02 for Rs.9,53,02,840/-, inclusive of principal and interest, with future payment dates and raw material supply. The main petition was withdrawn by the OC on 2021-09-02, but the order didn't mention liberty to revive the petition if the settlement failed. The OC claims the CD defaulted in payment and/or

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## Facts

Shark Mines & Minerals Private Limited (Operational Creditor) filed C.P. (IB) No.1876/KB/2019 against Maithan Ispat Limited (Corporate Debtor) for initiating CIRP, claiming a total debt of Rs. 9,53,02,840 as of 2019-08-31. The matter was initially listed on 2019-11-08. After negotiations, a settlement agreement was executed on 2021-09-02 for the same amount, including principal and interest, with future payment dates and raw material supply. Clause 3 of the settlement agreement outlined payment terms of Rs. 25,00,000 on 2021-09-02 and Rs. 25,00,000 on 2021-09-03, and the supply of 40000 tonnes of Iron Ore. Clause 6 stipulated that the settlement agreement would become null and void in case of any default in payment, allowing the Operational Creditor to revive the

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## Issues and analysis

### Issue 1: Whether the Restoration Application is maintainable given the settlement agreement and subsequent …

**Ratio:** The principle is that once a company petition is withdrawn based on a settlement, it

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**Reasoning:** The court reasoned that the order dated 2021-09-02 did not record any liberty granted to

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**Interpretation:** This means that the absence of explicit permission to revive the petition in

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**Application:** Since the order dismissing the original petition did not grant the OC the

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Shark Mines &…
- **Respondents:** Maithan Ispat…

## Timeline

- **2019-08-31 — Date of D…**: Date of default for the total…
- **2019-11-08 — First Li…**: C.P. (IB) No.1876/KB/2019 was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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