# In the matter of Indus Gartex Pvt. Ltd.  (IBC) No. 01-JPR-2022 in CP No. (IB)- 215-9-JPR-2019

> NCLT judgment dated 2023-06-01. Citation: TCN-2023-NCLT-03110. The case involves an application filed by Jindal Filaments Private Limited ('Applicant') to…

- **Court:** NCLT
- **Order date:** 1 Jun 2023
- **Citation:** TCN-2023-NCLT-03110
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/indus-gartex-pvt-ltd-ibc-no-01-jpr-2022-in-cp-no-ib-215-9-jpr-2019-08632427

## Summary

### Background

The case involves an application filed by Jindal Filaments Private Limited ('Applicant') to restore Company Petition No. (IB)-215/9/JPR/2019 against Indus Gartex Private Limited ('Corporate Debtor') due to default in payments under a Memorandum of Understanding (MOU) dated 11.11.2021. The original petition had been withdrawn based on the MOU, with the liberty to revive it if the terms were not met. The Operational Creditor (Jindal Filaments) claims that the Corporate Debtor breached the terms of the MOU, with an outstanding amount of Rs. 92,46,490/-. The Corporate Debtor made some payments totaling Rs. 32,75,895/- after the MOU was signed, but defaulted on the remaining amount. The Respondent (Indus Gartex) filed written submissions stating that the Applicant did not

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## Facts

Jindal Filaments Private Limited ('Applicant' and Operational Creditor) filed Company Petition No. (IB)-215/9/JPR/2019 against Indus Gartex Private Limited ('Corporate Debtor') due to payment defaults. A Memorandum of Understanding (MOU) was executed on 2021-11-11, leading to the withdrawal of the petition on 2021-12-22, with liberty to revive it if the MOU terms were not met. The Corporate Debtor made payments totaling Rs. 32,75,895/- after the MOU. The Operational Creditor claims that the Corporate Debtor breached the MOU, with an outstanding amount of Rs. 92,46,490/-. The Operational Creditor filed an application to restore the petition. The Respondent filed written submissions stating that the Applicant did not inform the Tribunal about subsequent payments

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## Issues and analysis

### Issue 1: Whether the application to restore Company Petition No. (IB)-215/9/JPR/2019 should be allowed given …

**Ratio:** The principle of 'liberty to revive' allows a previously withdrawn petition to be

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**Reasoning:** The court reasoned that the original order dated 22.12.2021 explicitly granted the

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**Interpretation:** The 'liberty to revive' clause is interpreted as a safeguard for the

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**Application:** The court applied the 'liberty to revive' principle to the facts of the case,

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## Parties

- **Judges:** Deep Chandr…; ATUL CHAT…
- **Appellants:** M/S JINDAL…
- **Respondents:** M/S INDUS GARTEX…
- **Advocates:** Dhiren R…; Naresh Kumar…

## Timeline

- **2019-09-01 — Filing of Company…**: Company Petition No. (IB)-215/9/JPR/2019 filed…
- **2021-11-11 — Execution…**: Memorandum of Understanding (MOU) executed…

## 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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