# In the matter of Toughcons Realtors Pvt. Ltd. CP(IB)-2945(MB)-2019

> NCLT judgment dated 2021-07-15. Citation: TCN-2021-NCLT-01721. The case CP(IB)-2945(MB)/2019 was filed by the Petitioner/Operational Creditor, Jai Mata Di…

- **Court:** NCLT
- **Order date:** 15 Jul 2021
- **Citation:** TCN-2021-NCLT-01721
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/toughcons-realtors-pvt-ltd-cpib-2945mb-2019-9b09f0f6

## Summary

### Background

The case CP(IB)-2945(MB)/2019 was filed by the Petitioner/Operational Creditor, Jai Mata Di Trading Co., against the Respondent/Corporate Debtor, Toughcons Realtors Pvt. Ltd., for initiation of Corporate Insolvency Resolution Process. The matter was heard several times from 2019-09-13 to 2021-03-09. An order dated 2020-02-21 indicated a full and final settlement of outstanding dues, with a cheque dated 2020-02-20 handed over to the Counsel for the Operational Creditor. The matter was listed on 2020-02-26 for reporting the final settlement, but the Respondent was absent. The matter was then posted to 2020-03-16. On 2021-01-25, the Counsel for the Petitioner submitted that certain amounts had been paid by the Corporate Debtor, and requested time to verify the same. The

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## Facts

Jai Mata Di Trading Co. filed CP(IB)-2945(MB)/2019 against Toughcons Realtors Pvt. Ltd. seeking to initiate Corporate Insolvency Resolution Process. The case was heard multiple times between September 13, 2019, and March 9, 2021. On February 21, 2020, an order indicated a full and final settlement of outstanding dues, with a cheque dated February 20, 2020, being handed over to the Operational Creditor's counsel. The matter was listed on February 26, 2020, for reporting the final settlement, but the Respondent was absent. The Petitioner's counsel appeared on January 25, 2021, stating that Rs.7.0 lakh had been paid by the Corporate Debtor and requested time to verify. On March 9, 2021, neither party was present. The court noted the settlement and the lack of interest in

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## Issues and analysis

### Issue 1: Whether CP(IB)-2945(MB)/2019 should be dismissed given the settlement between the parties and their …

**Ratio:** A case can be dismissed if a settlement has been reached between the parties and neither

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**Reasoning:** The court reasoned that since a settlement had been reached and neither party showed

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**Interpretation:** The court interpreted the lack of participation from both parties after a

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**Application:** The court applied the principle by dismissing CP(IB)-2945(MB)/2019 because the

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## Parties

- **Judges:** RAJESH S…; SUCHITRAKAN…
- **Appellants:** Jai Mata Di…
- **Respondents:** Toughcons…

## Timeline

- **2019-09-13 — First He…**: The matter came up for…
- **2021-03-09 — Hearing…**: The matter came up for hearing, but…

## 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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