# In the matter of Makali Spinning Mills Pvt. Ltd. IBA-421-2020

> NCLT judgment dated 2020-12-21. Citation: TCN-2020-NCLT-00032. The case pertains to an application under the Insolvency and Bankruptcy Code (IBC). The…

- **Court:** NCLT
- **Order date:** 21 Dec 2020
- **Citation:** TCN-2020-NCLT-00032
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/makali-spinning-mills-pvt-ltd-iba-421-2020-14591a17

## Summary

### Background

The case pertains to an application under the Insolvency and Bankruptcy Code (IBC). The petitioner, Vinayak Cotton Agencies, filed a petition against the respondent, Makali Spinning Mills Pvt Ltd. The respondent's counsel stated that the dues were settled in favor of the Corporate Debtor.

## Facts

Vinayak Cotton Agencies filed a petition (IBA/421/2020) against Makali Spinning Mills Pvt Ltd under Section 9 Rule 6 of IBC, 2016. The Respondent's counsel stated that the dues were settled in favor of the Corporate Debtor. On 2020-12-18, the Petitioner filed a Memo in the Registry Vide SR No.3907 stating that the matter has been settled. Consequently, the NCLT dismissed the application as settled.

## Issues and analysis

### Issue 1: Whether the application IBA/421/2020 should be dismissed based on the settlement between the …

**Ratio:** When parties to a legal proceeding reach a settlement, courts generally respect and

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**Reasoning:** The court accepted the memo filed by the petitioner stating that the matter had been

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**Interpretation:** The interpretation is that when a petitioner confirms a settlement, the court

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**Application:** The petitioner, Vinayak Cotton Agencies, confirmed the settlement by filing a

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** VINAYAK COTTON…
- **Respondents:** MAKALI SPINNING…

## Timeline

- **2020-12-18 — Petitioner fi…**: The Petitioner filed a Memo in the Registry Vide SR No.3907 stating that the matter has…
- **2020-12-21 — Hearing…**: Hearing of Chennai…

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