# In the matter of Vanraj Steels Private Limited

> NCLT judgment dated 2024-03-22. Citation: TCN-2024-NCLT-01944. The case involves Saraf Trexim Limited as the Operational Creditor and Vanraj Steels Private…

- **Court:** NCLT
- **Order date:** 22 Mar 2024
- **Citation:** TCN-2024-NCLT-01944
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vanraj-steels-private-limited-195babc8

## Summary

### Background

The case involves Saraf Trexim Limited as the Operational Creditor and Vanraj Steels Private Limited as the Corporate Debtor. An application, C.P. (IB)/184(KB)2023, was filed under IBC Section 9. An IA(I.B.C)/583(KB)2024 was filed.

## Facts

Saraf Trexim Limited initiated proceedings against Vanraj Steels Private Limited under Section 9 of the IBC. The parties reached a settlement, documented in Annexure C at page 21 of the application. As a result of the settlement, the Corporate Debtor sought to withdraw the initial Company Petition, C.P. (IB)/184(KB)2023. The court considered the settlement and the request for withdrawal. The settlement is a key fact because it forms the basis for the court's decision to allow the withdrawal of the initial petition and dispose of the related application.

## Issues and analysis

### Issue 1: Whether IA(I.B.C)/583(KB)2024 should be allowed and disposed of, considering the settlement arrived …

**Ratio:** The legal principle applied is that courts generally encourage and respect settlements

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**Reasoning:** The court reasoned that a settlement had been reached between the parties, and the

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**Interpretation:** This involves interpreting the provisions of the IBC that allow for settlements

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where a

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Saraf Trexim…
- **Respondents:** Vanraj Steels…

## Timeline

- **2024-03-22 — Hearing…**: Attendance-cum-order sheet of the…

## 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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