# In the matter of D. G. Land Developers Pvt. Ltd. CP(IB)-2944(MB)-2019

> NCLT judgment dated 2021-07-15. Citation: TCN-2021-NCLT-01722. The case CP(IB)-2944(MB)/2019 was filed by the Petitioner/Operational Creditor, Jai Mata Di…

- **Court:** NCLT
- **Order date:** 15 Jul 2021
- **Citation:** TCN-2021-NCLT-01722
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/d-g-land-developers-pvt-ltd-cpib-2944mb-2019-667f39f4

## Summary

### Background

The case CP(IB)-2944(MB)/2019 was filed by the Petitioner/Operational Creditor, Jai Mata Di Trading Co., against the Respondent/Corporate Debtor, D G Land Developers Pvt. Ltd., for initiation of Corporate Insolvency Resolution Process (CIRP). The matter was heard several times from August 29, 2019, to March 9, 2021. An order dated February 21, 2020, indicated a full and final settlement of outstanding dues between the parties, with a cheque dated February 20, 2020, handed over to the Counsel for the Operational Creditor. The matter was listed on February 26, 2020, for reporting the final settlement, but the Respondent was not present. The matter was then posted to March 16, 2020. The Counsel for the Petitioner was present on January 25, 2021, and submitted that certain

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## Facts

Jai Mata Di Trading Co., the Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against D G Land Developers Pvt. Ltd., the Corporate Debtor, by filing CP(IB)-2944(MB)/2019. Hearings took place from August 29, 2019, to March 9, 2021. On February 21, 2020, a full and final settlement of outstanding dues was reportedly reached, and a cheque was handed over to the Operational Creditor's counsel. The matter was listed for reporting the final settlement, but the Respondent was absent. The Petitioner's counsel later stated that certain amounts were still outstanding. The Corporate Debtor claimed to have paid Rs. 7.0 lakh. On March 9, 2021, neither party was present. The court noted the settlement and the lack of interest in reporting the closure of

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) application should be dismissed given …

**Ratio:** A court may dismiss a CIRP application if a settlement has been reached between the

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**Reasoning:** The court reasoned that a settlement had been reached between the parties, and no one was

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**Interpretation:** The interpretation is that once a settlement is reached, the purpose of CIRP is

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**Application:** In this case, the court applied the ratio by noting the reported settlement and

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## Parties

- **Judges:** RAJESH S…; SUCHITRA KANUPARTH…; +1 more
- **Appellants:** Jai Mata Di…
- **Respondents:** D G Land Developer…

## Timeline

- **2019-08-29 — First He…**: The matter came up for…
- **2021-03-09 — Last Hea…**: The matter came up for hearing, but…

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