# In the matter of Lexus India Ltd. IA-2946 & 3120-2020 in IB-2932-ND-2019

> NCLT judgment dated 2020-08-17. Citation: TCN-2020-NCLT-00846. The application was filed for withdrawal of CP No. IB-2932/ND/2019 based on a settlement…

- **Court:** NCLT
- **Order date:** 17 Aug 2020
- **Citation:** TCN-2020-NCLT-00846
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lexus-india-ltd-ia-2946-3120-2020-in-ib-2932-nd-2019-35100934

## Summary

### Background

The application was filed for withdrawal of CP No. IB-2932/ND/2019 based on a settlement reached between the parties on July 14, 2020. The Operational Creditor's counsel stated that the matter was settled before the Committee of Creditors (CoC) was formed, and there are no other claimants besides the Operational Creditor, who has already settled with the Corporate Debtor. The IRP, Mr. Soughat Sinha, also confirmed the settlement and had no objection to the withdrawal. The CoC was technically not formed yet, as only the Operational Creditor was a member.

## Facts

Trends Remedies Pvt Ltd filed an application against Lexus India Ltd under Section 9 of the IBC Code, 2016. The parties reached a settlement on July 14, 2020. The Operational Creditor, Trends Remedies Pvt Ltd, settled the matter with the Corporate Debtor, Lexus India Ltd, before the constitution of the Committee of Creditors (CoC). The IRP, Mr. Soughat Sinha, confirmed the settlement and had no objection to the withdrawal of the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor was the only member of the CoC, and technically, the CoC was not fully formed. The petitioner sought to withdraw the CP No. IB-2932/ND/2019.

## Issues and analysis

### Issue 1: Whether the petitioner should be allowed to withdraw the CP No. IB-2932/ND/2019 based on the …

**Ratio:** A settlement between parties in an insolvency proceeding can be a valid ground for

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**Reasoning:** The court considered the submissions of the counsels and the IRP, noting that the matter

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**Interpretation:** This implies that the court prioritizes settlements between parties, especially

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**Application:** In this case, the settlement between Trends Remedies Pvt Ltd and Lexus India

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; K.K. V…
- **Appellants:** Trends Remedies…
- **Respondents:** Lexus Ind…

## Timeline

- **2020-07-14 — Settlement…**: Settlement arrived…
- **2020-08-17 — Order Del…**: Order delivered on…

## 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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