# In the matter of Propcare Mall Management (I) Pvt. Ltd. C.P. (IB)No. 143-BB-2019

> NCLT judgment dated 2019-08-22. Citation: TCN-2019-NCLT-01846. M/s. Senses Creations, the operational creditor, filed C.P. (IB) No.143/BB/2019 under Section 9…

- **Court:** NCLT
- **Order date:** 22 Aug 2019
- **Citation:** TCN-2019-NCLT-01846
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/propcare-mall-management-i-pvt-ltd-cp-ibno-143-bb-2019-5b399a06

## Summary

### Background

M/s. Senses Creations, the operational creditor, filed C.P. (IB) No.143/BB/2019 under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 6 of the I&B (AAA) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Propcare Mall Management (I) Pvt. Ltd., the corporate debtor. The application was based on the corporate debtor's default of Rs. 19,80,666/-, including principal and interest at 18% per annum. The case was listed for admission on multiple dates, with adjournments granted at the request of the parties, including for settlement discussions.

## Facts

M/s. Senses Creations, acting as the operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Propcare Mall Management (I) Pvt. Ltd., the corporate debtor, due to a default of Rs. 19,80,666/-, which included principal and interest. The case, C.P. (IB) No.143/BB/2019, was filed under Section 9 of the IBC, 2016. The matter was repeatedly adjourned for admission, partly to allow for settlement negotiations. Eventually, both parties reached a settlement, documented in a Joint Settlement Memo dated 22.08.2019, where the corporate debtor agreed to pay Rs. 15,66,408/- in seven installments. The settlement was conditional upon the corporate debtor honoring post-dated cheques. The petitioner then sought to withdraw the petition based on this

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should permit the Petitioner to withdraw the instant Company …

**Ratio:** The principle is that if parties have settled their dispute and the Company Petition has

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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 aligns with the objective of the IBC to encourage

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**Application:** In this case, the parties had reached a settlement, documented in the Joint

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s. Senses…
- **Respondents:** M/s. Propcare…

## Timeline

- **2019-08-22 — Joint Settlem…**: Parties agreed to settlement, Corporate…
- **2018-08-31 — First Installm…**: First installment of…

## 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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