# In the matter of Bhandari Foils and Tubes Ltd. IBA-755-2019

> NCLT judgment dated 2020-01-06. Citation: TCN-2020-NCLT-02489. The case pertains to an application under the Insolvency and Bankruptcy Code (IBC). The matter…

- **Court:** NCLT
- **Order date:** 6 Jan 2020
- **Citation:** TCN-2020-NCLT-02489
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhandari-foils-and-tubes-ltd-iba-755-2019-da969460

## Summary

### Background

The case pertains to an application under the Insolvency and Bankruptcy Code (IBC). The matter was previously heard on 2019-11-25, concerning a One Time Settlement (OTS) proposal. The OTS proposal was pending before the bank for consideration. The Tribunal directed the Petitioner's counsel to obtain instructions from the banker regarding the OTS proposal submitted by the Corporate Debtor. The Tribunal considered whether the banker intended to proceed with or withdraw the proposal. The Petitioner sought to withdraw the petition with the liberty to refile if the OTS proposal failed due to the banker's disapproval or default.

## Facts

ICICI Bank Ltd. filed a petition (IBA/755/2019) against Bhandari Foils and Tubes Ltd. under Section 7 Rule 4. An OTS proposal was pending before the bank for consideration. The Tribunal directed the Petitioner's counsel to obtain instructions from the banker regarding the OTS proposal submitted by the Corporate Debtor. The Petitioner sought to withdraw the petition with the liberty to refile if the OTS proposal failed. A sum of Rs. 50 lakh was deposited by way of a demand draft for the consideration of the OTS proposal by the Petitioner Bank. The petition was dismissed as withdrawn, with the Petitioner granted the liberty to approach the Tribunal again.

## Issues and analysis

### Issue 1: Whether the petition should be dismissed as …

**Ratio:** Rule 8 of I&B (AAA) Rules, 2016 allows for

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**Reasoning:** The Tribunal took into consideration the representation that an OTS proposal was pending

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**Interpretation:** The Tribunal interpreted Rule 8 of I&B (AAA) Rules, 2016 to allow for the

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**Application:** The Tribunal applied Rule 8 of I&B (AAA) Rules, 2016 to the facts of the

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## Parties

- **Judges:** SHRIR VARAD…; SHRI. ANIL…
- **Appellants:** ICICI Ban…
- **Respondents:** BHANDARI FOILS…

## Timeline

- **2019-11-25 — Previous…**: Tribunal passed an order regarding the…
- **2020-01-06 — Hearing…**: Hearing held where the Petitioner sought to withdraw the petition due to the pending OTS…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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