# In the matter of Arcotech Limited CP (IB) No. 405-Chd-Hry-2018

> NCLT judgment dated 2019-04-11. Citation: TCN-2019-NCLT-03950. The case involves Usha Packagings, the petitioner and operational creditor, against Arcotech…

- **Court:** NCLT
- **Order date:** 11 Apr 2019
- **Citation:** TCN-2019-NCLT-03950
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arcotech-limited-cp-ib-no-405-chd-hry-2018-b357df87

## Summary

### Background

The case involves Usha Packagings, the petitioner and operational creditor, against Arcotech Limited, the respondent and corporate debtor. The petitioner filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016.

## Facts

Usha Packagings, the operational creditor, filed a petition against Arcotech Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. During the proceedings, the corporate debtor handed over a cheque dated 10.04.2019 for ₹ 4.00 lacs to the operational creditor, which was encashed. Subsequently, another cheque dated 10.05.2019 for ₹4,33,040/- was also handed over by the corporate debtor. The respondent's counsel assured the court that this cheque would also be encashed. As the outstanding debt was settled and promised to be paid, the court disposed of the petition, granting the operational creditor the liberty to mention any default in the agreed payment.

## Issues and analysis

### Issue 1: Whether the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, should be …

**Ratio:** When the outstanding debt is settled and promised to be paid, the petition does not

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**Reasoning:** The court reasoned that since the debt was settled and promised to be paid, the purpose

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**Interpretation:** The interpretation is that the primary objective of an insolvency petition is

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**Application:** In this case, the corporate debtor settled the outstanding debt by handing over

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## Parties

- **Judges:** M.K. Sh…; Pradeep R.…
- **Appellants:** Usha Pack…
- **Respondents:** Arcotech L…
- **Advocates:** Vishav Bharti…; Jeetender…; +2 more

## Timeline

- **2018-01-01 — Petition…**: CP (IB) No. 405/Chd/Hry/…
- **2019-04-10 — Cheque Hand…**: A cheque dated 10.04.2019 for ₹ 4.00 lacs was…

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