# In the matter of Prasad Sugar & Allied Agro Products Ltd. IA 1291-2022 in C.P. (IB)-4265(MB)2019

> NCLT judgment dated 2022-05-13. Citation: TCN-2022-NCLT-02763. The case involves an application (IA 1291/2022) seeking permission to withdraw a Corporate…

- **Court:** NCLT
- **Order date:** 13 May 2022
- **Citation:** TCN-2022-NCLT-02763
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/prasad-sugar-allied-agro-products-ltd-ia-1291-2022-in-cp-ib-4265mb2019-2685dd75

## Summary

### Background

The case involves an application (IA 1291/2022) seeking permission to withdraw a Corporate Insolvency Resolution Process (CIRP) application (CP (IB) 4265 of 2019). The applicant contends that the issues have been settled between the parties, and the settlement terms are enclosed with the application.

## Facts

Isgec Heavy Engineering Ltd filed a Corporate Insolvency Resolution Process (CIRP) application (CP (IB) 4265 of 2019) against Pradas Sugar and Allied Agro Products Limited. Subsequently, IA 1291/2022 was filed seeking permission to withdraw the CIRP application, citing a settlement between the parties. The settlement terms were submitted to the court, and it was stated that the Corporate Debtor, Pradas Sugar and Allied Agro Products Limited, had paid the agreed-upon sum. The relevance of these facts lies in the court's decision to allow the withdrawal of the CIRP application based on the settlement and the Corporate Debtor's compliance with its terms.

## Issues and analysis

### Issue 1: Whether the application (IA 1291/2022) for withdrawal of the Corporate Insolvency Resolution …

**Ratio:** A CIRP application can be withdrawn if the parties have reached a settlement and the

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**Reasoning:** The court considered the submission of both parties, the settlement terms, and the fact

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**Interpretation:** This case interprets the provisions of the Insolvency and Bankruptcy Code (IBC)

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Chandra Bha…; P.N. Des…
- **Appellants:** ISGEC Heavy…
- **Respondents:** Pradas Sugar and…

## Timeline

- **2019-01-01 — CP (IB)…**: CP (IB) 4265 of 2019…
- **2022-05-13 — Hearing…**: Hearing of Mumbai Bench of the…

## 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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