# In the matter of Lexus Granito (India) Ltd.

> NCLT judgment dated 2023-11-28. Citation: TCN-2023-NCLT-00556. The case involves an application (IA/1347(AHM) 2023) filed in CP(IB) 763 of 2019 under Section…

- **Court:** NCLT
- **Order date:** 28 Nov 2023
- **Citation:** TCN-2023-NCLT-00556
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/lexus-granito-india-ltd-082425db

## Summary

### Background

The case involves an application (IA/1347(AHM) 2023) filed in CP(IB) 763 of 2019 under Section 9 of the IBC, seeking the withdrawal of the application due to a settlement reached between Fritta India Pvt Ltd (Operational Creditor) and Lexus Granito (India) Ltd (Corporate Debtor). The Corporate Debtor was admitted into CIRP on 31.10.2023, and an Interim Resolution Professional (IRP) was appointed. The application also seeks the discharge of the IRP, reinstatement of the Board of Directors, and any other order deemed fit by the Tribunal.

## Facts

Fritta India Pvt Ltd filed an application under Section 9 of the IBC against Lexus Granito (India) Ltd, which was admitted into CIRP on 31.10.2023. An IRP was appointed. Subsequently, a settlement was reached between Fritta India Pvt Ltd and Lexus Granito (India) Ltd. The Form FA, indicating the settlement and payment of IRP fees, was received before the formation of the CoC. The IRP, Mr. Tanmay Banthia, confirmed that all fees and expenses had been paid. The key fact is the settlement arrived at before the CoC formation, which influenced the Tribunal's decision to allow the withdrawal of the CIRP application and discharge the IRP.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of CP(IB) 763 of 2019 should be allowed given the settlement …

**Ratio:** A settlement reached between the Operational Creditor and the Corporate Debtor before the

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**Reasoning:** The Tribunal considered the Form FA, which indicated that a settlement had been reached

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**Interpretation:** The interpretation is that if a settlement is reached before the CoC is formed,

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**Application:** In this case, the settlement was reached between Fritta India Pvt Ltd and Lexus

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## Parties

- **Judges:** SHAMMI…; SAMEER…
- **Appellants:** Fritta India Pvt…
- **Respondents:** Lexus Granito…
- **Advocates:** Tanmay Ba…

## Timeline

- **2019-01-01 — CP(IB) 763 of 2…**: CP(IB) 763 of 2019 was…
- **2023-10-31 — Admission t…**: Lexus Granito (India) Ltd…

## 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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