# In the matter of Soma Enterprises Ltd.

> NCLT judgment dated 2024-02-07. Citation: TCN-2024-NCLT-02741. The case involves a corporate insolvency resolution process under the IBC. The Financial…

- **Court:** NCLT
- **Order date:** 7 Feb 2024
- **Citation:** TCN-2024-NCLT-02741
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/soma-enterprises-ltd-bc603897

## Summary

### Background

The case involves a corporate insolvency resolution process under the IBC. The Financial Creditor (FC) has submitted a memo of withdrawal indicating that payments due to all banks/financial institutions, including the FC, have been addressed. The FC has received Rs. 607,49,00,000/-. The original Framework Settlement Agreement is in the FC's custody. The Resolution Professional (RP) had earlier claimed fees and charges, and the Corporate Debtor (CD) has promised to pay Rs. 7,27,096.00/- for which a Demand Draft drawn on Axis Bank, Banjara Hills, Hyderabad Branch, has been produced. The CD undertakes to handover the original of the same to the RP.

## Facts

The State Bank of India initiated a Corporate Insolvency Resolution Process (CIRP) against Soma Enterprises Ltd. The Financial Creditor (FC), State Bank of India, submitted a memo of withdrawal, indicating that payments due to all banks/financial institutions, including the FC, have been addressed. The FC has received an amount of Rs. 607,49,00,000/-. The original Framework Settlement Agreement is in the FC's custody. The Resolution Professional (RP) had earlier claimed fees and charges. The Corporate Debtor (CD) has promised to pay Rs. 7,27,096.00/- to the RP, for which a Demand Draft drawn on Axis Bank, Banjara Hills, Hyderabad Branch, has been produced. The CD undertakes to handover the original of the same to the RP during the course of the day. The relevance of

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) application can be disposed of as …

**Ratio:** A CIRP application can be withdrawn if the parties reach a settlement and the Financial

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**Reasoning:** The court considered the FC's submission of a memo of withdrawal, indicating that

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**Interpretation:** This reflects the principle that insolvency proceedings are not meant to be

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**Application:** In this case, the FC's receipt of the outstanding amount and the submission of

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## Parties

- **Judges:** SANJIV…; K. R. SAJI…
- **Respondents:** Soma Enterprises…

## Timeline

- **2024-02-07 — Order Sheet of…**: Order sheet of hearing (hybrid) dated 07.02.2024. The FC submitted a memo of withdrawal,…

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