# In the matter of Magnum Aviation Pvt. Ltd. IB-1666(ND)-2019

> NCLT judgment dated 2021-03-16. Citation: TCN-2021-NCLT-02692. The case involves a settlement between M/s. Dunlop Taikoo (Jinjiang) Aircraft Tyres Co. Ltd,…

- **Court:** NCLT
- **Order date:** 16 Mar 2021
- **Citation:** TCN-2021-NCLT-02692
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/magnum-aviation-pvt-ltd-ib-1666nd-2019-a0c44fd9

## Summary

### Background

The case involves a settlement between M/s. Dunlop Taikoo (Jinjiang) Aircraft Tyres Co. Ltd, the Operational Creditor, and M/s. Magnum Aviation Pvt. Ltd., the Corporate Debtor. An Interim Resolution Professional (IRP) was appointed. An application was filed under Section 12 through the IRP along with Form F, indicating a settlement. The Company Petition No. IB-1666/ND/2019 was admitted on 03.03.2021, and a public announcement was made on 07.03.2021.

## Facts

M/s. Dunlop Taikoo (Jinjiang) Aircraft Tyres Co. Ltd initiated a Corporate Insolvency Resolution Process (CIRP) against M/s. Magnum Aviation Pvt. Ltd. The Company Petition No. IB-1666/ND/2019 was admitted on 03.03.2021, and a public announcement was made on 07.03.2021. However, a settlement was reached between the parties on 10.03.2021. The Committee of Creditors had not been constituted by 10.03.2021. The Corporate Debtor made full and final payment to the Operational Creditor. The IRP, Mr. Gaurav Rohila, received expenses incurred during the process. The Operational Creditor then requested to withdraw the Company Petition.

## Issues and analysis

### Issue 1: Whether the settlement between the Operational Creditor and the Corporate Debtor warrants the …

**Ratio:** A settlement between parties in a CIRP can be a valid ground for withdrawing the

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**Reasoning:** The court considered the settlement agreement between the parties and the fact that the

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**Interpretation:** This interpretation allows for the efficient resolution of insolvency

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**Application:** The settlement was applied to the facts of the case, leading to the dismissal

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## Parties

- **Judges:** Ch. Mohd Sharief…; Narender Kumar…
- **Appellants:** M/s. Dunlop…
- **Respondents:** M/s. Magnum…

## Timeline

- **2021-03-03 — Admission of Company…**: Company Petition No.…
- **2021-03-07 — Public Annou…**: Public announcement regarding the…

## 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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