# In the matter of Kimaya fashions Pvt. Ltd. C.P. No. 1185-(MAH)-2017

> NCLT judgment dated 2017-09-08. Citation: TCN-2017-NCLT-00442. The case involves a Company Petition filed under the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 8 Sept 2017
- **Citation:** TCN-2017-NCLT-00442
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kimaya-fashions-pvt-ltd-cp-no-1185-mah-2017-a9722097

## Summary

### Background

The case involves a Company Petition filed under the Insolvency and Bankruptcy Code, 2016, specifically under sub-section 1 of Section 9, for initiating a Corporate Insolvency Resolution Process against Kimaya Fashions Private Limited. Veer Design Studio, the operational creditor, filed the petition. The parties agreed to settle the disputes amicably.

## Facts

Veer Design Studio, an operational creditor, initiated a Company Petition (C.P. No. 1185 of 2017) against Kimaya Fashions Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petition aimed to initiate a Corporate Insolvency Resolution Process (CIRP). Before any significant progress in the CIRP, both parties reached an amicable settlement. As part of the settlement, Kimaya Fashions Pvt. Ltd. agreed to pay Veer Design Studio Rs. 20,00,000 in five equal monthly installments of Rs. 4,00,000 each. The payment was secured by five post-dated cheques, starting from September 10, 2017, and continuing until January 10, 2018. Based on this settlement, Veer Design Studio filed a withdrawal memo, and the court subsequently

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## Issues and analysis

### Issue 1: Whether the Company Petition filed by Veer Design Studio against Kimaya Fashions Pvt. Ltd. should …

**Ratio:** A court may dismiss a petition if the parties have reached a settlement and the

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**Reasoning:** The court reasoned that since both parties, Veer Design Studio and Kimaya Fashions Pvt.

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**Interpretation:** The interpretation is that the court acknowledges the autonomy of parties to

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**Application:** In this specific case, the ratio and reasoning were applied to the facts that

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** M/S.VEERDESIGNSTUD…
- **Respondents:** KIMAYA FASHIONS…; KIMAYA FASHIONS…

## Timeline

- **2017-09-08 — Hearing of Mum…**: Hearing of the Mumbai Bench of the…
- **2017-09-10 — First Installment…**: First installment of Rs.…

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