# In the matter of Jenious Clothing Pvt. Ltd. C.P.(IB)No. 03-BB-2020

> NCLT judgment dated 2020-03-04. Citation: TCN-2020-NCLT-01651. The case C.P.(IB)No.03/BB/2020 was filed by M/s.Ginza Industries Ltd. (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 4 Mar 2020
- **Citation:** TCN-2020-NCLT-01651
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jenious-clothing-pvt-ltd-cpibno-03-bb-2020-64d404c1

## Summary

### Background

The case C.P.(IB)No.03/BB/2020 was filed by M/s.Ginza Industries Ltd. (Operational Creditor) under Section 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s.Jenious Clothing Pvt. Ltd. The case was listed for admission on various dates and adjourned to allow parties to explore settlement. The Operational Creditor claimed a default of Rs. 16,81,784/- along with interest @24% p.a.

## Facts

M/s.Ginza Industries Ltd. filed C.P.(IB)No.03/BB/2020 under Section 9 of the IBC, 2016, against M/s.Jenious Clothing Pvt. Ltd., claiming a default of Rs. 16,81,784/- plus interest. The case was listed for admission and adjourned multiple times to explore settlement possibilities. During the proceedings, the Respondent handed over two Demand Drafts to the Petitioner. Both parties' counsels filed a Memo Reporting Settlement dated 04.03.2020, confirming the settlement. The Petitioner then sought to withdraw the petition, which the court permitted, disposing of the case as withdrawn.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should permit the Petitioner to withdraw the petition given the …

**Ratio:** The Adjudicating Authority has the discretion to allow the withdrawal of a petition if

…

**Reasoning:** The court reasoned that since the matter had been settled with the Respondent handing

…

**Interpretation:** This reflects the principle that settlements are encouraged in insolvency

…

**Application:** The court applied this principle by allowing M/s.Ginza Industries Ltd. to

…

## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s.Ginza…
- **Respondents:** M/s.Jenious…

## Timeline

- **2020-01-06 — Case Listed for…**: The case was initially…
- **2020-01-10 — Case Listed for…**: The case was listed for…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/jenious-clothing-pvt-ltd-cpibno-03-bb-2020-64d404c1