# In the matter of Akarshak Infrastructure Pvt. Ltd. C.P.(IB)No.120-BB-2019

> NCLT judgment dated 2019-07-24. Citation: TCN-2019-NCLT-02335. M/s. G.K.S. Associates (Operational Creditor) filed C.P. (IB) No.120/BB/2019 under Section 9 of…

- **Court:** NCLT
- **Order date:** 24 Jul 2019
- **Citation:** TCN-2019-NCLT-02335
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/akarshak-infrastructure-pvt-ltd-cpibno120-bb-2019-b71f8a9d

## Summary

### Background

M/s. G.K.S. Associates (Operational Creditor) filed C.P. (IB) No.120/BB/2019 under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process against M/s. Akarshak Infrastructure Pvt. Ltd. (Corporate Debtor) due to a default of Rs. 23,52,149/-. The case was listed for admission on multiple dates, but was adjourned to allow the parties to serve notice and settle the issue.

## Facts

M/s. G.K.S. Associates, the Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Akarshak Infrastructure Pvt. Ltd., the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The basis for the petition was a default amounting to Rs. 23,52,149/-, which included both principal and interest. The case was initially listed for admission and was adjourned on multiple occasions. Subsequently, the parties reached a settlement, with the Corporate Debtor paying Rs. 20,00,000/- to the Operational Creditor. Both parties filed a joint memo to confirm the settlement. The Operational Creditor then sought to withdraw the CIRP application.

## Issues and analysis

### Issue 1: Whether the Petitioner should be allowed to withdraw the Company Petition given the settlement …

**Ratio:** A company petition can be withdrawn if the parties have settled the dispute and no

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**Reasoning:** The court reasoned that since the parties had reached a settlement, as evidenced by the

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**Interpretation:** This interpretation allows for the withdrawal of a company petition when a

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**Application:** In this case, the court applied the principle by allowing the Petitioner to

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s. G.K.S.…
- **Respondents:** M/s. Akarshak…

## Timeline

- **2019-03-19 — Case Listed for…**: The case was listed for…
- **2019-04-05 — Case Listed for…**: The case was listed for…

## 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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