# In the matter of Cheema Paper Mills Pvt. Ltd. CP No. (IB) 414-ALD-2019

> NCLT judgment dated 2022-06-13. Citation: TCN-2022-NCLT-02247. The case pertains to CP No. (IB) 414/ALD/2019 before the National Company Law Tribunal,…

- **Court:** NCLT
- **Order date:** 13 Jun 2022
- **Citation:** TCN-2022-NCLT-02247
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/cheema-paper-mills-pvt-ltd-cp-no-ib-414-ald-2019-09a3f371

## Summary

### Background

The case pertains to CP No. (IB) 414/ALD/2019 before the National Company Law Tribunal, Allahabad Bench. The matter was listed for pronouncement on June 13, 2022. However, before the board commenced, the learned counsel on both sides reported that the matter had been settled out of court.

## Facts

The case involves CP No. (IB) 414/ALD/2019, filed under Section 7 of the IBC. Asset Reconstruction Company (India) Ltd initiated proceedings against Cheema Paper Mills Pvt Ltd. The case was listed for pronouncement on June 13, 2022. However, prior to the commencement of the board proceedings, both parties informed the court that they had reached a settlement outside of court. This settlement led to the dismissal of the case as withdrawn.

## Issues and analysis

### Issue 1: Whether the settlement between the parties outside of court warrants the dismissal of CP No. (IB) …

**Ratio:** When parties involved in a case pending before a court or tribunal reach a settlement

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**Reasoning:** The court acknowledged the submission of the learned counsel representing both parties

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**Interpretation:** The interpretation is that the court recognizes and respects out-of-court

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**Application:** In this specific instance, since both Asset Reconstruction Company and Cheema

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## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Appellants:** Asset Reconstructi…
- **Respondents:** Cheema Paper…; M/s Cheema Paper…

## Timeline

- **2019-01-01 — Case Fil…**: CP No. (IB) 414/ALD/2019…
- **2022-06-13 — Hearing…**: Hearing scheduled for pronouncement;…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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