# In the matter of V.G. Textiles Pvt. Ltd. Vs. C.M. Industries Civil Appeal No.(s). ......OF 2018 (Arising out of SLP(C)No.9703 of 2018)

> SC judgment dated 2018-04-20. Citation: TCN-2018-SC-00063. The case arises from a civil appeal against an order passed by the National Company Law Tribunal…

- **Court:** SC
- **Order date:** 20 Apr 2018
- **Citation:** TCN-2018-SC-00063
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/vg-textiles-pvt-ltd-vs-cm-industries-civil-appeal-no-9ebe2723

## Summary

### Background

The case arises from a civil appeal against an order passed by the National Company Law Tribunal (NCLT), Divisional Bench, Chennai, in CP No. CP/591/(IB)/CB/2017, dated 07-11-2017. The impugned order admitted a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016.

## Facts

V.G. Textiles Pvt. Ltd. filed an appeal against an order of the National Company Law Tribunal (NCLT), Divisional Bench, Chennai. The NCLT order, dated 07-11-2017, admitted a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016. During the Supreme Court proceedings, it was stated that the amount in question had been paid, and the dispute between V.G. Textiles Pvt. Ltd. and M/S C.M. Industries had been settled. This settlement was a key factor in the Supreme Court's decision to allow the appeal and set aside the NCLT order. The relevance of the settlement is that it resolved the underlying dispute that led to the insolvency petition, making the continuation of the insolvency proceedings unnecessary.

## Issues and analysis

### Issue 1: Whether the impugned order admitting the petition under Section 9 of the Insolvency & …

**Ratio:** When a dispute between parties is settled, and the amount in question is paid, the

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**Reasoning:** The Court reasoned that since the dispute had been settled and the amount in question had

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**Interpretation:** This interpretation emphasizes the importance of resolving disputes amicably

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**Application:** In this specific case, the ratio was applied to the facts where the appellant,

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## Parties

- **Judges:** ADARSH KUMA…; ROHINTON FALI…
- **Appellants:** V.G. TEXTILES…
- **Respondents:** M/S C.M. INDUSTRIE…
- **Other parties:** Over Tu…

## Timeline

- **2017-11-07 — NCLT Ord…**: The National Company Law Tribunal (NCLT), Divisional Bench, Chennai, passed an order in…
- **2018-04-20 — Supreme Court…**: The Supreme Court heard the appeal. It was stated that the amount in question had been…

## 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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