# In the matter of Mantri Developers Pvt. Ltd. C.P. (IB) No. 163-BB-2018

> NCLT judgment dated 2019-09-23. Citation: TCN-2019-NCLT-01302. The case pertains to a Corporate Insolvency Resolution Process (CIRP) initiated by Shri…

- **Court:** NCLT
- **Order date:** 23 Sept 2019
- **Citation:** TCN-2019-NCLT-01302
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mantri-developers-pvt-ltd-cp-ib-no-163-bb-2018-a84507af

## Summary

### Background

The case pertains to a Corporate Insolvency Resolution Process (CIRP) initiated by Shri Doddappagowda Shivasangappa Patil (Petitioner/Financial Creditor) against M/s. Mantri Developers Private Limited (Respondent/Corporate Debtor) under Section 7 of the IBC, 2016. The petition was filed due to a default of Rs. 1,27,34,200/- as of 30.06.2018. The case was listed for admission on multiple dates, during which the parties explored settlement possibilities.

## Facts

Shri Doddappagowda Shivasangappa Patil, the Financial Creditor, filed CP (IB) No.163/BB/2018 against Mantri Developers Private Limited, the Corporate Debtor, under Section 7 of the IBC, 2016, due to a default of Rs. 1,27,34,200/- as of 30.06.2018. The case was listed for admission on various dates between 20.09.2018 and 23.09.2019. During this period, the parties explored settlement possibilities. A Memorandum of Settlement was entered into on 21.09.2019, where the Corporate Debtor agreed to pay Rs. 1,26,77,757/- to the Financial Creditor. Consequently, the Financial Creditor sought to withdraw the petition, which the Tribunal permitted, granting liberty to revive the petition if the settlement terms were breached. The key fact is the settlement agreement which led to

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## Issues and analysis

### Issue 1: Whether the Tribunal should permit the Financial Creditor to withdraw the Company Petition based on …

**Ratio:** The legal principle applied is that if the parties have settled the issue between

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**Reasoning:** The Tribunal reasoned that since the parties had settled the issue and the Company

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**Interpretation:** The interpretation is that the Tribunal recognizes and encourages settlements

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**Application:** In this specific case, the ratio and reasoning were applied by permitting the

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Doddappagowda…
- **Respondents:** Mantri Developers…; M/s. Mantri…

## Timeline

- **2018-06-30 — Default…**: The Corporate Debtor defaulted on a total…
- **2018-09-20 — First Listi…**: The case was listed for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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