# 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-01215. 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-01215
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ratna-garments-yadwad-limited-cp-ib-no177-bb-2019-af9f787c

## 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, to initiate CIRP against M/s.Ratna Cements (Yadwad) Limited, the corporate debtor, due to an alleged default of Rs.30,35,884.22 as of 2018-06-14. 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, and the petitioner filed a memo for withdrawal, stating that the corporate debtor agreed to pay the outstanding amount, with part payment made via demand draft and a debit note issued for the remaining balance. The petitioner sought to withdraw the petition with the liberty to file a fresh petition if the respondent failed to honor the settlement terms. The

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## Issues and analysis

### Issue 1: Whether the petitioner should be allowed to withdraw the petition in light of the settlement …

**Ratio:** The court has the discretion to allow the withdrawal of a petition, especially when the

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**Reasoning:** The court reasoned that since the parties had settled the issues and the case was not yet

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**Interpretation:** This implies that the court prioritizes settlement between parties before the

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**Application:** The court applied this principle to the present case, allowing the petitioner

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## Parties

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

## Timeline

- **2018-06-14 — Date of D…**: The alleged date of default for…
- **2019-05-28 — Listing…**: Case listed for…

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