# In the matter of Flair Garments Private Limited CP (IB) No. 13-BB-2019

> NCLT judgment dated 2019-09-19. Citation: TCN-2019-NCLT-01377. M/s. Mangrove Organics, the operational creditor, filed C.P(IB) No. 13/BB/2019 under Section 9…

- **Court:** NCLT
- **Order date:** 19 Sept 2019
- **Citation:** TCN-2019-NCLT-01377
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/flair-garments-private-limited-cp-ib-no-13-bb-2019-73e77b07

## Summary

### Background

M/s. Mangrove Organics, the operational creditor, filed C.P(IB) No. 13/BB/2019 under Section 9 of the I&BC, 2016, read with Rule 6 of the I&B(AAA) Rules, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Flair Garments Private Limited, the corporate debtor, due to a default of Rs. 36,74,928. The case was listed for admission on multiple dates and adjourned at the request of the parties. During the proceedings, the respondent proposed a settlement of Rs. 26,50,000, payable in two installments.

## Facts

M/s. Mangrove Organics, acting as the operational creditor, initiated proceedings against M/s. Flair Garments Private Limited, the corporate debtor, under Section 9 of the I&BC, 2016, due to a default amounting to Rs. 36,74,928. The case, C.P(IB) No. 13/BB/2019, was listed for admission on several dates between January and September 2019, with adjournments occurring at the request of both parties. During the proceedings, M/s. Flair Garments Private Limited proposed a settlement of Rs. 26,50,000 to M/s. Mangrove Organics, payable in two installments: Rs. 6,62,500 within 10 days of acceptance and Rs. 19,87,500 within 6 months of the first installment, specifically on or before 19.03.2020. The petitioner, M/s. Mangrove Organics, then sought to withdraw the petition,

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## Issues and analysis

### Issue 1: Whether the Tribunal should permit the petitioner to withdraw the Company Petition given the …

**Ratio:** When parties settle their disputes and the case is not yet admitted by the Adjudicating

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**Reasoning:** The Tribunal reasoned that since the parties had settled the issues between themselves

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**Interpretation:** This interpretation allows for the efficient resolution of disputes outside of

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**Application:** In this case, the Tribunal applied this principle by allowing M/s. Mangrove

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s.Mangrove…
- **Respondents:** M/s. Flair…
- **Advocates:** Saga…; Vinay Kumar…; +2 more

## Timeline

- **2019-01-04 — Case Listed for…**: The case was initially…
- **2019-01-10 — Case Listed for…**: The case was listed for…

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