# In the matter of P Sarkar Fabricators Private Limited

> NCLT judgment dated 2022-05-09. Citation: TCN-2022-NCLT-02827. The case involves an application (I.A. 404/KB/2022) filed by a member of the suspended board of…

- **Court:** NCLT
- **Order date:** 9 May 2022
- **Citation:** TCN-2022-NCLT-02827
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/p-sarkar-fabricators-private-limited-22c4c300

## Summary

### Background

The case involves an application (I.A. 404/KB/2022) filed by a member of the suspended board of directors seeking recall of the order dated 26/04/2022, which initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The applicant sought withdrawal of the petition and was directed to deposit Rs.1,00,000/- with the Prime Minister's National Relief Fund, which was complied with on 06/05/2022.

## Facts

An application (I.A. 404/KB/2022) was filed by a member of the suspended board of directors seeking recall of the order dated 26/04/2022, which initiated the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The applicant sought withdrawal of the petition. The applicant was directed to deposit Rs.1,00,000/- with the Prime Minister's National Relief Fund, and the deposit was made on 06/05/2022. A settlement was reached between the parties, and no Committee of Creditors (CoC) had been constituted. The court considered the application under section 12A of the Code. The order dated 26/04/2022 was recalled, the CIRP was closed, the Corporate Debtor was freed from the rigours of the Code, and the suspended board of directors was restored.

## Issues and analysis

### Issue 1: Whether the application for recall of the order initiating CIRP should be allowed given the …

**Ratio:** Section 12A of the Code allows for withdrawal of CIRP applications under certain

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**Reasoning:** The court reasoned that since a settlement had been reached and no CoC was formed, the

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**Interpretation:** Section 12A is interpreted to provide a mechanism for parties to resolve their

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**Application:** The court applied Section 12A to the facts of the case, noting the settlement

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Respondents:** P SARKAR FABRICATO…

## Timeline

- **2022-04-26 — Order Da…**: Order passed initiating Corporate Insolvency Resolution Process (CIRP) against the…
- **2022-05-06 — Deposit of…**: Applicant directed to deposit Rs.1,00,000/- with the Prime Minister's National Relief…

## 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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