# In the matter of Popular Steel Works and Agricultural Implements Private Limited

> NCLT judgment dated 2023-10-11. Citation: TCN-2023-NCLT-01303. The case involves an application filed by the Interim Resolution Professional (IRP) under…

- **Court:** NCLT
- **Order date:** 11 Oct 2023
- **Citation:** TCN-2023-NCLT-01303
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/popular-steel-works-and-agricultural-implements-private-limited-0a830a7f

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) under Section 12A of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 30A of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, seeking withdrawal of the Corporate Insolvency Resolution Process (CIRP). The matter was settled between the parties before the constitution of the Committee of Creditors (COC). The IRP also sought restoration of the management of the Corporate Debtor to the Suspended Directors and discharge of the IRP, as well as approval for payment of IRP fees and CIRP costs.

## Facts

Karveer Nivasini Engineers & Suppliers initiated a Corporate Insolvency Resolution Process (CIRP) against Popular Steel Works and Agricultural Implements Private Limited under Section 9 of the IBC, 2016. An Interim Resolution Professional (IRP) was appointed. Before the Committee of Creditors (COC) could be constituted, the parties reached a settlement. The IRP then filed an application (I.A. 4519/2023) under Section 12A of the IBC, 2016, seeking withdrawal of the CIRP. The application also sought restoration of the management to the suspended directors, discharge of the IRP, and approval for payment of IRP fees and CIRP costs. The IRP had visited the Corporate Debtor's office on several occasions as per the instructions of the NCLAT. The Operational Creditor had

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the Corporate Insolvency Resolution Process (CIRP) should …

**Ratio:** Section 12A of the IBC, 2016, allows for the withdrawal of CIRP with the approval of 90%

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**Reasoning:** The court noted that the matter was settled between the parties by entering into consent

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**Interpretation:** Section 12A provides a mechanism for withdrawing CIRP, primarily requiring COC

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**Application:** The court applied this interpretation to the present case, where the parties

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## Parties

- **Judges:** LAKSHMI G…; SH. CHARANJEET…
- **Appellants:** Karveer Nivasini…
- **Respondents:** Popular Steel…

## Timeline

- **2023-10-11 — Order Shee…**: Order sheet of the hearing of Mumbai Bench…
- **2023-09-09 — Settlemen…**: The Interim Resolution Professional submits the matter was settled between the parties by…

## 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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