# In the matter of Bhala Finance Pvt Ltd., Vs. Sokhal Dream Builder LLP IA No. 428-JPR-2019 in CP No. (IB)-l 13-7-JPR-2019

> NCLT judgment dated 2019-12-11. Citation: TCN-2019-NCLT-00244. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 11 Dec 2019
- **Citation:** TCN-2019-NCLT-00244
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhala-finance-pvt-ltd-vs-sokhal-dream-builder-llp-ia-no-428-jpr-2019-in-cp-no-64798deb

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. An application under Section 12(a) read with Regulation 30(a) of IBBI Regulation has been filed by the counsel for the Resolution Professional seeking withdrawal of the application.

## Facts

M/s Bhala Finance Pvt. Ltd. filed an application under Section 7 of the IBC, 2016, against M/s Sokhal Dream Builder LLP. Subsequently, an application was filed under Section 12(a) read with Regulation 30(a) of IBBI Regulation by the counsel for the Resolution Professional seeking withdrawal of the initial application. This withdrawal application was supported by a letter dated 28.11.2019 from the director of the Financial Creditor/Applicant. The court considered the withdrawal application and the accompanying documents.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the initial application filed under Section 7 of the IBC, …

**Ratio:** The court has the discretion to allow the withdrawal of an application filed under

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**Reasoning:** The court considered the application for withdrawal filed by the Resolution

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate corporate

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**Application:** In this case, the Financial Creditor/Applicant, M/s Bhala Finance Pvt. Ltd.,

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## Parties

- **Judges:** SH. P.S.N.…; SH. RAGHU…
- **Appellants:** M/s Bhala Finance…
- **Respondents:** M/s Sokhal Dream…

## Timeline

- **2019-11-08 — Order Da…**: Reference to an earlier order, developments in…
- **2019-11-28 — Letter from Financial…**: Letter from the director of the Financial Creditor/Applicant requesting withdrawal of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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