# In the matter of Saravana Stores Gold Palace Pvt. Ltd. IBA-1199-2019

> NCLT judgment dated 2020-12-03. Citation: TCN-2020-NCLT-00169. The case pertains to an application filed under the Insolvency and Bankruptcy Code (IBC). A…

- **Court:** NCLT
- **Order date:** 3 Dec 2020
- **Citation:** TCN-2020-NCLT-00169
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/saravana-stores-gold-palace-pvt-ltd-iba-1199-2019-93d31ccb

## Summary

### Background

The case pertains to an application filed under the Insolvency and Bankruptcy Code (IBC). A settlement was reached between the petitioner, New Jothi Marketing Corporation, and the respondent, Saravana Stores Gold Palace Pvt Ltd. A memo of settlement was filed in the Registry on 03.12.2020 with SR No. 3634.

## Facts

New Jothi Marketing Corporation filed an application (IBA/1188/2019) against Saravana Stores Gold Palace Pvt Ltd under Section 9 Rule 6 of the IBC 2016. The counsels for both the petitioner and the respondent were present through video conferencing. The petitioner's counsel stated that a settlement was reached between the parties, and a memo of settlement was filed in the Registry on 03.12.2020 with SR No. 3634. The court took the memo on record.

## Issues and analysis

### Issue 1: Whether the application IBA/1188/2019 should be dismissed given the settlement arrived at between …

**Ratio:** When parties to a legal proceeding arrive at a settlement outside of court and duly

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**Reasoning:** The court reasoned that since the parties had reached a settlement and filed a memo of

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**Interpretation:** This interpretation reinforces the principle that courts encourage and

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**Application:** In this case, the court applied the ratio by acknowledging the settlement

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** New Jothi…
- **Respondents:** Saravana Stores…

## Timeline

- **2019-01-01 — Application…**: IBA/1188/2019…
- **2020-12-03 — Memo of Settlem…**: A memo of settlement was filed in…

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