# In the matter of Sri Lakshmi Srinivasa Jute Mills Private Limited TCP (IB) No. 90-9-aMR-2019 CP (IB) No. 232-9-HDB-2019

> NCLT judgment dated 2019-11-22. Citation: TCN-2019-NCLT-00493. The case involves a Company Petition filed under the Insolvency and Bankruptcy Code. The…

- **Court:** NCLT
- **Order date:** 22 Nov 2019
- **Citation:** TCN-2019-NCLT-00493
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-lakshmi-srinivasa-jute-mills-private-limited-tcp-ib-no-90-9-amr-2019-cp-ib-n-5d8444b5

## Summary

### Background

The case involves a Company Petition filed under the Insolvency and Bankruptcy Code. The Petitioner, an Operational Creditor, and the Respondent, the Corporate Debtor, have amicably settled the matter out of court. The Authority had previously admitted the Company Petition and appointed an Interim Resolution Professional (IRP).

## Facts

Mr. Khetulal Pugalia, representing M/s Khetulal Pugalia and Sons (HUF), filed a Company Petition against M/s Sri Lakshmi Srinivasa Jute Mills Private Limited. The NCLT Amaravati Bench at Hyderabad initially admitted the petition on 2019-11-19 and appointed an IRP. However, before the Committee of Creditors (CoC) could be constituted, the Petitioner (Operational Creditor) and the Respondent (Corporate Debtor) reached an amicable settlement out of court. Consequently, they jointly filed a memo seeking withdrawal of the application. The court accepted the memo, noting that pushing the Respondent into CIRP would be inappropriate given the settlement.

## Issues and analysis

### Issue 1: Whether the Company Petition can be dismissed as withdrawn given the amicable settlement between …

**Ratio:** Section 12(A) of the Insolvency and Bankruptcy Code, read with Rule 11 of the NCLT Rules,

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**Reasoning:** The court reasoned that since the Petitioner and Respondent had settled the matter out of

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**Interpretation:** Section 12(A) provides a mechanism for parties to resolve their disputes

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**Application:** The court applied Section 12(A) and Rule 11 to the facts of the case, where the

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## Parties

- **Judges:** Janab Mohammed…
- **Appellants:** Mr Khetulal…
- **Respondents:** M/s Sri Lakshmi…

## Timeline

- **2019-11-19 — Admission of Company…**: The Authority admitted the Company…
- **2019-11-22 — Order Da…**: The court dismissed the Company Petition as withdrawn following the settlement between…

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