# In the matter of Pramod Kumar Chaubey, vs. Guangzhou Seal Laser Rapid Prototype Co. Ltd. &
Anr. Company Appeal (AT) (Insolvency) No. 726 of 2022

> NCLAT judgment dated 2022-08-05. Citation: TCN-2022-NCLAT-00301. The case involves an appeal against an order admitting an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 5 Aug 2022
- **Citation:** TCN-2022-NCLAT-00301
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/pramod-kumar-chaubey-vs-guangzhou-seal-laser-rapid-prototype-co-ltd-anr-company-f9597d7a

## Summary

### Background

The case involves an appeal against an order admitting an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Respondent had filed the Section 9 application, and an Interim Resolution Professional (IRP) was appointed. The Appellant challenged this order. During the appeal, the Tribunal passed an interim order staying the constitution of the Committee of Creditors (CoC). The Operational Creditor and the Corporate Debtor have settled their disputes, and the Operational Creditor seeks to withdraw the Section 9 application.

## Facts

Pramod Kumar Chaubey, the Suspended Director of Corporate Debtor Schneider Prototyping (India) Pvt. Ltd., filed an appeal against an order admitting a Section 9 application under the IBC filed by Guangzhou Seal Laser Rapid Prototype Co. Ltd. The Respondent's Section 9 application had been admitted, and an Interim Resolution Professional (IRP) was appointed. During the appeal, the Tribunal stayed the constitution of the Committee of Creditors (CoC). The Operational Creditor and the Corporate Debtor reached a settlement, with the Corporate Debtor paying US$ 112909 to the Operational Creditor. The Operational Creditor then sought to withdraw the Section 9 application. Employees had also filed Section 9 applications claiming dues, which were pending before the Adjudicating

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## Issues and analysis

### Issue 1: Whether the Operational Creditor should be allowed to withdraw the Section 9 application following …

**Ratio:** The principle is that if parties settle their disputes, the court may allow the

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**Reasoning:** The Tribunal reasoned that since the parties had settled and the entire payment was made

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**Interpretation:** This interprets the IBC to allow for settlements between parties, promoting

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**Application:** The ratio and reasoning were applied to the specific facts where the

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Pramod Kumar…
- **Respondents:** Schneider…; Guangzhou Seal…
- **Advocates:** Nalin K…; Ribhu…; +10 more

## Timeline

- **2022-06-20 — Order Da…**: Order passed admitting the Section 9…
- **2022-07-19 — Order Da…**: Further Orders passed directing 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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