# In the matter of SIMPEX SAFETY & APPARELS LLP

> NCLT judgment dated 2024-06-28. Citation: TCN-2024-NCLT-01105. The case involves two applications, I.A. No. 486/KB/2023 and I.A. No. 664/KB/2022, in…

- **Court:** NCLT
- **Order date:** 28 Jun 2024
- **Citation:** TCN-2024-NCLT-01105
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/simpex-safety-apparels-llp-76be1ca9

## Summary

### Background

The case involves two applications, I.A. No. 486/KB/2023 and I.A. No. 664/KB/2022, in connection with CP(IB)No. 80/KB/2020. The first application, I.A. No. 486/KB/2023, was filed by Rachana Agarwal, the RP/Applicant, seeking to withdraw the application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC) by PLB Logistics Private Limited, the Operational Creditor. The second application, I.A. No. 664/KB/2022, was also filed by Rachana Agarwal, the Interim Resolution Professional of the Corporate Debtor, Simpex Safety & Apparels LLP, seeking cooperation of the Suspended Board and other connected persons for the purpose of the Corporate Insolvency Resolution Process (CIRP).

## Facts

PLB Logistics Private Limited, the Operational Creditor, had filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against Simpex Safety & Apparels LLP, the Corporate Debtor. Rachana Agarwal, the Interim Resolution Professional (IRP), filed two applications: I.A. No. 486/KB/2023 seeking to withdraw the Section 9 application, and I.A. No. 664/KB/2022 seeking cooperation from the Suspended Board for the CIRP. The Committee of Creditors (CoC) resolved to withdraw the Section 9 application in its 5th meeting held on 09.11.2022. A settlement agreement was executed on 15.12.2022, and Form-FA was received on the same date. The decision to withdraw was supported by 100% majority of

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## Issues and analysis

### Issue 1: Whether I.A. No. 486/KB/2023, seeking withdrawal of the application filed under Section 9 of the …

**Ratio:** The legal principle applied is that the Committee of Creditors (CoC) has the authority to

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**Reasoning:** The court reasoned that the CoC had resolved to withdraw the application in its 5th

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**Interpretation:** The interpretation is that the CoC's decision, especially when unanimous, holds

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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:** BIDISHA BA…; SHRI. D.…; +1 more
- **Appellants:** Rachana A…
- **Respondents:** Simpex Safety &…; Akash…

## Timeline

- **2022-11-09 — 5th CoC M…**: The 5th Committee of Creditors (CoC) meeting was held, wherein it was resolved that the…
- **2022-12-15 — Settlement Agreement…**: A settlement agreement was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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