# In the matter of P Sarkar Fabricators Private Limited

> NCLT judgment dated 2022-05-09. Citation: TCN-2022-NCLT-02829. 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-02829
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/p-sarkar-fabricators-private-limited-23f65fe9

## 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

On 26/04/2022, an order was passed initiating Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor. A member of the suspended board of directors filed an application (I.A. 404/KB/2022) seeking recall of this order. The applicant sought to withdraw the petition. The court directed the applicant to deposit Rs. 1,00,000/- with the Prime Minister's National Relief Fund. The deposit was made on 06/05/2022. The parties reached a settlement, and no Committee of Creditors (CoC) had been constituted. The court considered the application under section 12A of the Code. The key facts are the settlement between the parties, the absence of a CoC, and the deposit made by the applicant, which influenced the court's decision to allow the withdrawal and recall the

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## 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 the parties had reached a settlement and no Committee of

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**Interpretation:** Section 12A provides a mechanism for CIRP withdrawal when a settlement is

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

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## Parties

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

## Timeline

- **2022-04-26 — Order for CIRP…**: An order was passed initiating the Corporate Insolvency Resolution Process (CIRP) against…
- **2022-05-06 — Deposit…**: The applicant deposited Rs. 1,00,000/- with the Prime Minister's National Relief Fund as…

## 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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