# In the matter of 5MF &G Private Limited vs. BMI Wholesale Trading Private Limited

> NCLAT judgment dated 2025-08-25. Citation: TCN-2025-NCLAT-00465. The appellant, 5MF &G Private Limited, filed an appeal against the order dated 21.02.2023…

- **Court:** NCLAT
- **Order date:** 25 Aug 2025
- **Citation:** TCN-2025-NCLAT-00465
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/5mf-g-private-limited-vs-bmi-wholesale-trading-private-limited-a167e1a6

## Summary

### Background

The appellant, 5MF &G Private Limited, filed an appeal against the order dated 21.02.2023 passed by the National Company Law Tribunal, Mumbai Bench, which dismissed the restoration application to revive Company Petition No. 696 of 2021.

## Facts

The appellant, 5MF &G Private Limited, supplied garments to the respondent, BMI Wholesale Trading Private Limited, based on purchase orders and invoices.

The respondent initially made some payments but later defaulted on payment obligations.

The appellant issued a demand notice dated 23 December 2020 under section 8 of the Insolvency and Bankruptcy Code, 2016, demanding Rs. 4,14,43,560/-.

During the pendency of the company petition, the parties entered into a settlement agreement on 4th April 2022, where the respondent agreed to pay Rs. 3,10,87,725/-.

The appellant filed a memo of withdrawal dated 11th April 2022, which was allowed by the adjudicating authority.

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## Issues and analysis

### Issue 1: Whether the adjudicating authority committed an …

**Ratio:** Yes, the adjudicating

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**Reasoning:** The withdrawal of the original petition was based on a settlement agreement that

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**Interpretation:** The appellate tribunal interpreted the settlement agreement as providing a

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**Application:** The appellate tribunal applied the principles established in Finsbury Global

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## Parties

- **Judges:** Mohd. Faiz Alam…; Indevar P…
- **Appellants:** 5MF &G Private…
- **Respondents:** Bmi Wholesale…
- **Advocates:** Atharv…

## Timeline

- **2020-12-23 — Demand Notice…**: Appellant issued a demand notice to the respondent under section 8 of the Insolvency and…
- **2022-04-04 — Settlement Ag…**: Parties entered into a settlement agreement where the respondent agreed to pay Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(1) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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