# In the matter of Bharath HI-Tech Pvt. Ltd. CP (IB) No. 51-BB-2019

> NCLT judgment dated 2019-09-30. Citation: TCN-2019-NCLT-01157. This case involves a petition filed by Mr. Adnan Azhar Ebrahim, a Financial Creditor, against…

- **Court:** NCLT
- **Order date:** 30 Sept 2019
- **Citation:** TCN-2019-NCLT-01157
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bharath-hi-tech-pvt-ltd-cp-ib-no-51-bb-2019-03c60ffe

## Summary

### Background

This case involves a petition filed by Mr. Adnan Azhar Ebrahim, a Financial Creditor, against M/s. Bharath Hi-Tech Builders Pvt. Ltd., the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The petition was based on the Corporate Debtor's alleged default of Rs. 23,49,325, consisting of principal, interest, and penal interest. The case was listed for admission on multiple dates, but ultimately the parties reached a settlement. The Financial Creditor agreed to withdraw the petition based on the Consent Terms submitted by both parties.

## Facts

Mr. Adnan Azhar Ebrahim, the Financial Creditor, filed a petition against M/s. Bharath Hi-Tech Builders Pvt. Ltd., the Corporate Debtor, under Section 7 of the IBC, 2016, due to a default of Rs. 23,49,325. This amount included principal, interest, and penal interest as of May 31, 2018. The Corporate Debtor approached the Financial Creditor for settlement, leading to Consent Terms. The Corporate Debtor agreed to pay Rs. 17,00,000 in installments, with Rs. 15,00,000 towards principal and Rs. 2,00,000 towards interest. The Financial Creditor agreed to accept this amount as full and final settlement, foregoing additional interest and legal fees. The Corporate Debtor had already paid Rs. 21,348 towards interest. The remaining amount was to be paid in three installments in

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## Issues and analysis

### Issue 1: Whether the Financial Creditor should be permitted to withdraw the petition for initiation of CIRP …

**Ratio:** A court may allow the withdrawal of a petition if the parties have reached a settlement

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**Reasoning:** The court reasoned that since the Company Petition was not yet admitted and the parties

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**Interpretation:** This legal issue involves the interpretation of the court's power to allow the

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

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Mr.Adnan Azhar…
- **Respondents:** M/s Bharath Hi…; M/s.Bharath…
- **Advocates:** George P…; Amit Ma…

## Timeline

- **2019-01-03 — Case Listed for…**: The case was initially…
- **2019-01-09 — Case Listed for…**: The case was listed for…

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