# In the matter of Jia Lal Kishori Lal Pvt. Ltd. IA-2242(ND) 2020 & IA-854(ND)2021 in (IB) 630 (ND)-2020

> NCLT judgment dated 2021-09-24. Citation: TCN-2021-NCLT-01014. The case involves two applications, IA/854/2021 and IA/2242/2020, filed in relation to…

- **Court:** NCLT
- **Order date:** 24 Sept 2021
- **Citation:** TCN-2021-NCLT-01014
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jia-lal-kishori-lal-pvt-ltd-ia-2242nd-2020-ia-854nd2021-in-ib-630-nd-2020-756f3404

## Summary

### Background

The case involves two applications, IA/854/2021 and IA/2242/2020, filed in relation to IB-630/ND/2020. IA/854/2021 seeks to amend the original petition IB-630/2020 to correct the date of default. IA/2242/2020 seeks condonation of a 56-day delay in filing the application under Section 9 of the Insolvency & Bankruptcy Code (IBC), 2016. The applicant, M/s Ravi Iron Limited, is the operational creditor, and the respondent, Jia Lal Kishori Lal Pvt Ltd, is the corporate debtor. The dispute arises from the corporate debtor's failure to pay for steel supplied by the operational creditor. A mediation order was passed on 16.11.2015, but the corporate debtor defaulted on the agreed payment schedule. The operational creditor initiated legal proceedings under Section 138 of the

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## Facts

M/s Ravi Iron Limited (Operational Creditor) supplied steel to Jia Lal Kishori Lal Pvt Ltd (Corporate Debtor) based on purchase orders. A Post Dated Cheque (PDC) No. 286473 dated 11.01.2008 for Rs. 27,33,000/- was issued by the Corporate Debtor. The receivables as of 31.03.2008 amounted to Rs. 27,01,320/-, but the Corporate Debtor defaulted on payment, and the PDC was dishonored. The Operational Creditor invoked a Bank Guarantee of Rs. 10,00,000/-, realizing this amount on 02.05.2008, reducing the receivables to Rs. 17,01,320/-. Legal proceedings under Section 138 of the Negotiable Instruments Act were initiated in Ghaziabad on 06.06.2008, later transferred to Delhi. A mediation order was passed on 16.11.2015, settling the case for Rs. 11,00,000/- subject to timely

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## Issues and analysis

### Issue 1: Whether the applicant can amend the date of default in the original petition based on the mediation …

**Ratio:** A settlement agreement arrived at during mediation cannot be treated as a valid order or

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**Reasoning:** The court observed that the applicant failed to produce any document showing that the

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**Interpretation:** Rule 25 of the Mediation Rules requires that a settlement agreement be placed

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**Application:** The applicant sought to amend the date of default based on the mediation order.

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** M/s RAVIIRON…
- **Respondents:** JIA LAL KISHORI…

## Timeline

- **2008-01-11 — Post Dated Cheq…**: Corporate Debtor issued PDC No.…
- **2008-03-31 — Receivables…**: Receivables amounted to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5 — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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