# In the matter of LCM Logistics Pvt. Ltd. C.P. (IB) No.221-BB-2019

> NCLT judgment dated 2019-12-02. Citation: TCN-2019-NCLT-00368. The case involves a petition filed by ABT Parcel Services against LCM Logistics Pvt. Ltd. under…

- **Court:** NCLT
- **Order date:** 2 Dec 2019
- **Citation:** TCN-2019-NCLT-00368
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lcm-logistics-pvt-ltd-cp-ib-no221-bb-2019-403ac351

## Summary

### Background

The case involves a petition filed by ABT Parcel Services against LCM Logistics Pvt. Ltd. under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to a default of Rs. 30,25,600 plus interest. The case was listed for admission on multiple dates, but was adjourned each time at the request of the parties, primarily to allow for settlement negotiations.

## Facts

ABT Parcel Services, an operational creditor, filed a petition against LCM Logistics Pvt. Ltd., the corporate debtor, under Section 9 of the IBC, 2016. The petition sought to initiate CIRP due to a default of Rs. 30,25,600 plus interest at 18% p.a. The case was repeatedly adjourned to allow the parties to settle. Eventually, a Joint Memo of Settlement was executed on December 2, 2019, where LCM Logistics Pvt. Ltd. agreed to pay Rs. 30,25,000 in six installments via post-dated cheques. The cheques were drawn on Karnataka Bank Ltd, Mahalakshmipuram Branch, Bangalore. The settlement was confirmed by the counsel for both parties. The operational creditor agreed to withdraw the petition and not pursue further claims if the settlement was honored. The corporate debtor

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## Issues and analysis

### Issue 1: Whether the Company Petition should be withdrawn given the settlement reached between the …

**Ratio:** When parties settle a dispute before the admission of a Company Petition, the

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**Reasoning:** The court reasoned that since the Company Petition had not yet been admitted and the

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**Interpretation:** This interpretation acknowledges the importance of encouraging settlement

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**Application:** In this case, the court applied the ratio by allowing ABT Parcel Services to

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. ABT Parcel…
- **Respondents:** M/s. LCM Logistics…

## Timeline

- **2019-07-01 — Case Listed for…**: The case was initially…
- **2019-07-09 — Case Adjo…**: The case was adjourned at…

## 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)

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