# In the matter of Arcot Textile Mill Ltd. CP-939-(IB)-2018

> NCLT judgment dated 2019-07-31. Citation: TCN-2019-NCLT-02194. The case involves a petition filed under CP/939/(IB)/2018. The Operational Creditor's counsel…

- **Court:** NCLT
- **Order date:** 31 Jul 2019
- **Citation:** TCN-2019-NCLT-02194
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arcot-textile-mill-ltd-cp-939-ib-2018-a99e01e2

## Summary

### Background

The case involves a petition filed under CP/939/(IB)/2018. The Operational Creditor's counsel and Mr. Subodh Chopra, the authorized signatory of the Corporate Debtor, are present. A settlement was reached between the parties, and a sum of Rs.25 lakhs was paid through RTGS.

## Facts

A petition was filed under CP/939/(IB)/2018. The authorized signatory of the Corporate Debtor, Mr. Subodh Chopra, was present. A settlement was reached between the parties, and the Corporate Debtor paid Rs.25 lakhs to the Operational Creditor through RTGS. The Counsel for the Operational Creditor confirmed the payment. Consequently, the Counsel requested the withdrawal of the petition.

## Issues and analysis

### Issue 1: Whether the petition should be dismissed as withdrawn, given the settlement between the parties and …

**Ratio:** A petition can be dismissed as withdrawn if the parties have reached a settlement and the

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**Reasoning:** The court reasoned that since the parties had reached a settlement, and the Operational

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**Interpretation:** This aligns with the principle that courts should respect settlements reached

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**Application:** In this case, the settlement and payment of Rs.25 lakhs by the Corporate Debtor

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## Parties

- **Judges:** Ch. Mohd Sharief…; Anil Ku…
- **Appellants:** SWADESHI POLYTEX…
- **Respondents:** ARCOT TEXTILE…

## Timeline

- **2019-07-31 — Hearing…**: Hearing held at 10.30 AM before the Chennai…

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