# In the matter of Bajaj Rubber Company Pvt. Ltd. vs. Saraswati Timber Pvt. Ltd. Company Appeal (AT) (Ins) No. 1296 of 2022

> NCLAT judgment dated 2023-05-01. Citation: TCN-2023-NCLAT-00564. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, against an…

- **Court:** NCLAT
- **Order date:** 1 May 2023
- **Citation:** TCN-2023-NCLAT-00564
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bajaj-rubber-company-pvt-ltd-vs-saraswati-timber-pvt-ltd-company-appeal-7e682f26

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, against an order dated 2022-08-11 passed by the National Company Law Tribunal (NCLT), New Delhi, in I.A. No. 3247/ND/2022, which was related to CP No. (IB)-1441(ND)/2018. The Interlocutory application sought to revive/restore CP No. 1441/2018, which had been previously withdrawn by the appellant due to an outside settlement. The NCLT dismissed the I.A. No. 3247/ND/2022.

## Facts

Bajaj Rubber Company Pvt. Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) before the NCLT, which was numbered as CP No. 1441/2018, against Saraswati Timber Pvt. Ltd. Before the application was admitted, Bajaj Rubber Company withdrew it based on a settlement with Saraswati Timber. The NCLT allowed the withdrawal and granted liberty to revive the application if the settlement terms were violated. Subsequently, a cheque for Rs. 1,25,000 given by Saraswati Timber was dishonored on 2020-12-24. After a delay of approximately three and a half years, Bajaj Rubber Company filed I.A. No. 3247/ND/2022 to revive the original application. The NCLT dismissed the I.A. The appellant claimed that Rs. 24,00,000 was still outstanding from the

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## Issues and analysis

### Issue 1: Whether the NCLT was correct in dismissing the Interlocutory Application (I.A. No. 3247/ND/2022) …

**Ratio:** The principle is that a party cannot indefinitely delay the revival of a withdrawn

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**Reasoning:** The court reasoned that the appellant had delayed the revival of the application for an

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**Interpretation:** The interpretation is that the liberty granted to revive a withdrawn

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** Rakesh…; Alok Sriv…
- **Appellants:** Bajaj Rubber…
- **Respondents:** Saraswati Timber…

## Timeline

- **2018-01-01 — CP No. 1441/20…**: Bajaj Rubber Company Pvt. Ltd. filed an application under Section 9 of the IBC before the…
- **2019-01-21 — CP No. 1441/2018…**: NCLT permitted the withdrawal of CP No. 1441/2018 based on a settlement between the…

## Legal provisions

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

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