# In the matter of B M Advertising Pvt. Ltd. CA(IB)No. 1528-KB-2019 in CP (IB) No. 223-KB-2018

> NCLT judgment dated 2019-11-18. Citation: TCN-2019-NCLT-00572. The case pertains to CP(IB) No. 223/KB/2018 and CA(IB)No.1528/KB/2019 before the National…

- **Court:** NCLT
- **Order date:** 18 Nov 2019
- **Citation:** TCN-2019-NCLT-00572
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/b-m-advertising-pvt-ltd-caibno-1528-kb-2019-in-cp-ib-no-223-kb-2018-a92bd40c

## Summary

### Background

The case pertains to CP(IB) No. 223/KB/2018 and CA(IB)No.1528/KB/2019 before the National Company Law Tribunal, Kolkata Bench. CA(IB) No. 1528/KB/2019 is an application filed by the IRP for recording the settlement of the matter and permitting the Operational Creditor to withdraw the CP, as the matter was settled out of the Tribunal.

## Facts

Rammaica India Ltd initiated a Corporate Insolvency Resolution Process (CIRP) against B.M Advertising Pvt Ltd under Section 9 of the IBC. The CP was admitted on 2019-10-16. However, the matter was settled out of the Tribunal before the Committee of Creditors (CoC) could be formed, as no claims were received after the public announcement. The IRP then filed an application (CA(IB) No. 1528/KB/2019) to record the settlement and permit the Operational Creditor to withdraw the CP. The IRP's fees and costs were discharged. The key fact is the out-of-court settlement, which led to the IRP's application for withdrawal.

## Issues and analysis

### Issue 1: Whether the application filed by the IRP for recording the settlement of the matter and permitting …

**Ratio:** The principle is that if a settlement is reached between the parties outside of the

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**Reasoning:** The Tribunal reasoned that the matter was settled out of the Tribunal, the CoC was not

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**Interpretation:** This interprets the IBC to allow for settlements reached outside the Tribunal

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**Application:** In this case, the settlement between Rammaica India Ltd and B.M Advertising Pvt

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Rammaica In…
- **Respondents:** B.M Advertising…
- **Advocates:** Udit Ag…; Sushmita…

## Timeline

- **N/A — Initiation…**: Rammaica India Ltd initiated CIRP against B.M…
- **2019-10-16 — Admission…**: The CP was admitted vide…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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