# In the matter of Impex Ferro Tech Ltd. CP (IB) 133-KB-2020

> NCLT judgment dated 2022-04-18. Citation: TCN-2022-NCLT-03238. An application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016. The…

- **Court:** NCLT
- **Order date:** 18 Apr 2022
- **Citation:** TCN-2022-NCLT-03238
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/impex-ferro-tech-ltd-cp-ib-133-kb-2020-8e919c5e

## Summary

### Background

An application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor, TPI Industries Pvt. Ltd., initiated proceedings against the Corporate Debtor, Impex Ferro Tech Ltd. The Corporate Debtor's counsel appeared in court and stated that the Corporate Debtor was settling the matter with the Operational Creditor by handing over two Demand Drafts.

## Facts

TPI Industries Pvt. Ltd., the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Impex Ferro Tech Ltd., the Corporate Debtor. During the proceedings, the Corporate Debtor's counsel informed the court that the Corporate Debtor was settling the matter with the Operational Creditor. The Corporate Debtor handed over two Demand Drafts, bearing numbers 944125 dated 2022-04-01 for Rs. 2,32,800/- and 944126 dated 2022-04-04 for Rs. 48,926/-, covering the entire sum claimed in the Company petition. Upon receiving these drafts, the Operational Creditor's counsel requested to withdraw the proceedings. The court then dismissed the case as withdrawn.

## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, should …

**Ratio:** When a settlement is reached between the Operational Creditor and the Corporate Debtor,

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**Reasoning:** The court accepted the submission of the Corporate Debtor's counsel that the matter was

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**Interpretation:** This reflects the principle that parties are free to settle their disputes

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**Application:** In this case, the Corporate Debtor settled the matter by providing Demand

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** TPI Industries…
- **Respondents:** Impex Ferro Tech…

## Timeline

- **2022-04-01 — Demand Draf…**: Demand Draft No. 944125 was…
- **2022-04-04 — Demand Draf…**: Demand Draft No. 944126 was…

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