# In the matter of Ratna Garments (Yadwad) Limited C.P. (IB) No.177-BB-2019

> NCLT judgment dated 2019-09-27. Citation: TCN-2019-NCLT-01193. M/s.Magnifico Minerals Private Limited filed C.P.(IB)No.177/BB/2019 under Section 9 of the IBC,…

- **Court:** NCLT
- **Order date:** 27 Sept 2019
- **Citation:** TCN-2019-NCLT-01193
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ratna-garments-yadwad-limited-cp-ib-no177-bb-2019-9f93672d

## Summary

### Background

M/s.Magnifico Minerals Private Limited filed C.P.(IB)No.177/BB/2019 under Section 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s.Ratna Cements (Yadwad) Limited, alleging a default. The case was listed for admission on multiple dates and adjourned at the request of the parties. The petitioner sought to withdraw the petition with the liberty to file a fresh petition if the respondent failed to honor the settlement.

## Facts

M/s.Magnifico Minerals Private Limited, the operational creditor, filed a petition under Section 9 of the IBC, 2016, against M/s.Ratna Cements (Yadwad) Limited, the corporate debtor, due to an alleged default of Rs.30,35,884.22 as of June 14, 2018. The case was listed for admission on several dates and adjourned each time at the request of the parties. Subsequently, the parties reached a settlement where the corporate debtor agreed to pay the outstanding amount. A portion of the amount (Rs.4,45,620) was paid via demand draft, and a debit note was issued for the remaining balance (Rs.25,90,263). Based on this settlement, the operational creditor sought to withdraw the petition, reserving the right to refile if the corporate debtor failed to adhere to the settlement

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should permit the Petitioner to withdraw the petition based on …

**Ratio:** When parties settle their disputes and the case is not yet admitted, the Adjudicating

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**Reasoning:** The court reasoned that since the parties had settled the issues between themselves and

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**Interpretation:** This interpretation allows for the efficient resolution of disputes outside of

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**Application:** The court applied this principle by allowing M/s.Magnifico Minerals Private

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s.Magnifico…
- **Respondents:** M/s.Ratna Cements…

## Timeline

- **2018-06-14 — Default…**: The Corporate Debtor defaulted on…
- **2019-05-28 — Case Listed for…**: The case was listed for…

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