# In the matter of Khaitan Electricals Ltd. CP (IB) No. 326-9-HDB-2017

> NCLT judgment dated 2018-11-02. Citation: TCN-2018-NCLT-00381. The case involves a petition under the Insolvency and Bankruptcy Code (IBC). The Petitioner's…

- **Court:** NCLT
- **Order date:** 2 Nov 2018
- **Citation:** TCN-2018-NCLT-00381
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/khaitan-electricals-ltd-cp-ib-no-326-9-hdb-2017-a3010e55

## Summary

### Background

The case involves a petition under the Insolvency and Bankruptcy Code (IBC). The Petitioner's counsel stated that there has been no concrete settlement proposal from the Respondent and that the matter is being prolonged. The Corporate Debtor's representative, Sri Vijay Kumar, stated that they are intending to settle the matter, with a potential investor showing interest in the company.

## Facts

The Bank of India, the Financial Creditor, initiated proceedings against Khaitan Electricals Ltd, the Corporate Debtor, under Section 9 of the IBC. The Petitioner's counsel claims a lack of progress in settlement negotiations and accuses the Respondent of delaying the matter. The Corporate Debtor's representative, Sri Vijay Kumar, stated that they are trying to settle the matter with a potential investor showing interest. The Financial Creditor is willing to grant a short time extension if the Respondent can pay a substantial amount.

## Issues and analysis

### Issue 1: Whether the Respondent should be granted additional time to pursue settlement negotiations with the …

**Ratio:** Courts have the discretion to grant time extensions to facilitate settlement

…

**Reasoning:** The court considered the submissions from both sides and the interest of justice,

…

**Interpretation:** This reflects the court's approach to encourage settlement and resolution of

…

**Application:** The court applied this principle by granting time to the Respondent to approach

…

## Parties

- **Judges:** K. Anantha…
- **Appellants:** Bank of…
- **Respondents:** Khaitan Electrical…

## Timeline

- **2018-11-02 — Hearing…**: Hearing held on…
- **2018-11-13 — Next Hearin…**: Matter put up 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/khaitan-electricals-ltd-cp-ib-no-326-9-hdb-2017-a3010e55