# In the matter of Rana Polycot Limited

> NCLT judgment dated 2023-08-18. Citation: TCN-2023-NCLT-01999. The case involves an application (IA No. 764/2020) filed by Rana Polycot Limited…

- **Court:** NCLT
- **Order date:** 18 Aug 2023
- **Citation:** TCN-2023-NCLT-01999
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rana-polycot-limited-0daa5a63

## Summary

### Background

The case involves an application (IA No. 764/2020) filed by Rana Polycot Limited (Applicant/Corporate Debtor) against Superfine Packaging (Respondent/Operational Creditor) under Rule 11 of National Company Law Tribunal Rules, 2016, seeking review/recall of an order dated 06.11.2020. The initial Corporate Insolvency Resolution Process (CIRP) application was filed due to an alleged debt of Rs. 37,05,851/-. During the proceedings, the parties reached a compromise, and an application for withdrawal was filed. The Adjudicating Authority initially dismissed the CP (IB) No. 382/Chd/Chd/2018 as withdrawn on 22.01.2020. Subsequently, the petitioner filed an application for restoration, which was heard on 06.11.2020. The corporate debtor claimed force majeure prevented

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## Facts

Rana Polycot Limited (Corporate Debtor) faced a CIRP application from Superfine Packaging (Operational Creditor) for a debt of Rs. 37,05,851/-. During the proceedings, both parties agreed to a settlement, and an application for withdrawal was filed. The Adjudicating Authority dismissed the initial application. Subsequently, Rana Polycot Limited filed an application for restoration. Rana Polycot Limited issued a demand draft and several cheques in lieu of the settlement agreement. However, some of these cheques were dishonored due to attachment orders from the Income Tax Department. Despite the dishonored cheques, Rana Polycot Limited transferred amounts through pay orders and NEFT, totaling Rs. 24,55,851/-. Superfine Packaging acknowledged receiving Rs. 37,05,851/- but

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## Issues and analysis

### Issue 1: Whether the initial Corporate Insolvency Resolution Process (CIRP) application is maintainable …

**Ratio:** The legal principle is that if the debt, which formed the basis of the CIRP application,

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**Reasoning:** The court notes that the main CP(IB) No. 382/Chd/Chd/2018 is no longer maintainable

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**Interpretation:** This means that if the principal amount of the debt has been paid, the CIRP

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**Application:** In this case, the court acknowledges that the corporate debtor has paid the

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Respondents:** Rana Polycot…; Superfine…

## Timeline

- **2020-01-21 — Settlement Ag…**: Parties entered into a…
- **2020-01-22 — Initial Application…**: Adjudicating Authority dismissed the CP…

## 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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