# 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-01732. 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-01732
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/d-g-land-developers-pvt-ltd-cpib-2944mb-2019-9d16ddd7

## 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. The matter was heard several times from 2019-08-29 to 2021-03-09. An order dated 2020-02-21 indicated a full and final settlement of outstanding dues between the parties, with a cheque dated 2020-02-20 handed over to the Counsel for the Operational Creditor. The matter was listed on 2020-02-26 for reporting final settlement, but the Respondent was not present. The matter was then posted on 2020-03-16. The Counsel for the Petitioner was present on 2021-01-25 and submitted that certain amounts were outstanding.

## Facts

Jai Mata Di Trading Co., the Operational Creditor, filed a case (CP(IB)-2944(MB)/2019) against D G Land Developers Pvt. Ltd., the Corporate Debtor, seeking to initiate the Corporate Insolvency Resolution Process. Hearings took place over a period from August 29, 2019, to March 9, 2021. An initial settlement was reached between the parties as of February 21, 2020, with a cheque dated February 20, 2020, handed over to the Operational Creditor's counsel. The matter was listed for reporting the final settlement on February 26, 2020, but the Respondent was absent. The Petitioner's counsel appeared on January 25, 2021, claiming outstanding amounts. The Corporate Debtor had paid Rs. 7.0 lakh and sought time to verify the same. On March 9, 2021, nobody was present from either

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process should be initiated against D G Land Developers …

**Ratio:** The initiation of the Corporate Insolvency Resolution Process (CIRP) is contingent upon

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**Reasoning:** The court observed that a settlement had been reached between the parties, and a cheque

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**Interpretation:** The legal interpretation is that if parties settle a debt dispute, the CIRP may

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**Application:** In this case, the settlement between Jai Mata Di Trading Co. and D G Land

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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…
- **2020-02-20 — Cheque Hand…**: A cheque was handed over to the Counsel for the Operational Creditor as part of a…

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