# In the matter of P Sarkar Fabricators Private Limited

> NCLT judgment dated 2022-05-09. Citation: TCN-2022-NCLT-02817. 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-02817
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/p-sarkar-fabricators-private-limited-47f1d6e7

## 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 of P Sarkar Fabricators Private Limited, seeking the 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 this was complied with on 06/05/2022. The court noted that a settlement had been reached between the parties and that no Committee of Creditors (CoC) had been constituted. This was deemed an application that should be considered in terms of section 12A of the Code. The initial order initiating CIRP was dated 2022-04-26.

## 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 with the approval of

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**Reasoning:** The court reasoned that since a settlement was reached between the parties and no CoC was

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP applications. The absence

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**Application:** Given the settlement and the absence of a CoC, the court applied the principle

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Respondents:** P SARKAR FABRICATO…; MACWIRE TRADERS…
- **Advocates:** Swapna Ch…; Shreya Cha…; +2 more

## Timeline

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

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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