# In the matter of Taneja Iron & Steel Co Ltd. IA 65 of 2022 in TP 158 of 2019

> NCLT judgment dated 2022-09-22. Citation: TCN-2022-NCLT-00963. IA 65 of 2022 was filed in TP 158 of 2019 [CP(IB) 653 of 2019] under Section 9 of the…

- **Court:** NCLT
- **Order date:** 22 Sept 2022
- **Citation:** TCN-2022-NCLT-00963
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/taneja-iron-steel-co-ltd-ia-65-of-2022-in-tp-158-of-2019-a2def07a

## Summary

### Background

IA 65 of 2022 was filed in TP 158 of 2019 [CP(IB) 653 of 2019] under Section 9 of the Insolvency and Bankruptcy Code (IBC). The application was filed by the Interim Resolution Professional (IRP) seeking withdrawal of the main matter, CP(IB) 653 of 2019, based on a settlement between the original operational creditor and the original corporate debtor.

## Facts

Velji Doshabhai & Sons Pvt Ltd initiated insolvency proceedings against Taneja Iron & Steel Co Ltd. The Interim Resolution Professional (IRP) filed IA 65 of 2022 seeking withdrawal of the main matter CP(IB) 653 of 2019. The IRP submitted that the Committee of Creditors (CoC) was not formed and that the parties had settled the dispute. The application for withdrawal was based on the settlement between the original operational creditor and the original corporate debtor. The court heard the IRP and granted permission to withdraw the main matter, releasing the corporate debtor from the rigours of the CIRP. This settlement is the key fact that led to the withdrawal of the insolvency proceedings.

## Issues and analysis

### Issue 1: Whether the settlement between the operational creditor and the corporate debtor is a valid ground …

**Ratio:** The legal principle applied is that a settlement between the parties involved in an

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**Reasoning:** The court reasoned that since the IRP submitted that the CoC was not formed and the

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**Interpretation:** The interpretation is that the IBC allows for flexibility in resolving

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**Application:** In this specific case, the IRP's submission of a settlement between Velji

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Velji Doshabhai &…
- **Respondents:** Taneja Iron &…

## Timeline

- **2019-01-01 — Filing of TP 158 of…**: Insolvency proceedings…
- **2022-01-01 — Filing of IA 6…**: IRP filed IA 65 of 2022 for withdrawal of…

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