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

> NCLT judgment dated 2023-10-11. Citation: TCN-2023-NCLT-01306. The case involves an application (I.A. 4519/2023) filed by the Interim Resolution Professional…

- **Court:** NCLT
- **Order date:** 11 Oct 2023
- **Citation:** TCN-2023-NCLT-01306
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/popular-steel-works-and-agricultural-implements-private-limited-b62a17af

## Summary

### Background

The case involves an application (I.A. 4519/2023) 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 IRP submitted that the matter was settled between the parties by entering into consent terms before the constitution of the Committee of Creditors (COC). The CIRP was initiated against Popular Steel Works and Agricultural Implements Private Limited.

## Facts

Karveer Nivasini Engineers & Suppliers initiated a Corporate Insolvency Resolution Process (CIRP) against Popular Steel Works and Agricultural Implements Private Limited. The Interim Resolution Professional (IRP) filed an application (I.A. 4519/2023) seeking withdrawal of the CIRP under Section 12A of the IBC, 2016, based on a settlement reached between the parties before the Committee of Creditors (COC) was formed. The IRP visited the Corporate Debtor's office on multiple occasions as per the instructions of the NCLAT. The IRP also submitted details of costs incurred during the CIRP, including Form A publication, expenses on visits to the Corporate Debtor's office, and accountant fees. An amount of Rs. 5,00,000/- was deposited by the Operational Creditor to the

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## Issues and analysis

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

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

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**Reasoning:** The court considered the IRP's submission that the parties had settled the matter before

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**Interpretation:** Section 12A and Regulation 30A are interpreted to facilitate settlements

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**Application:** The court applied Section 12A and Regulation 30A to the facts of the case,

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## Parties

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

## Timeline

- **2020-01-01 — Company Pe…**: Company Petition No.…
- **2023-04-28 — CIRP Ord…**: CIRP order was passed…

## 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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