# 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-01156. Mr. Xerxes Adi Shahiwalla, a financial creditor, filed C.P(IB) No.51/BB/2019 under Section 7 of…

- **Court:** NCLT
- **Order date:** 30 Sept 2019
- **Citation:** TCN-2019-NCLT-01156
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bharath-hi-tech-pvt-ltd-cp-ib-no-51-bb-2019-58eff68f

## Summary

### Background

Mr. Xerxes Adi Shahiwalla, a financial creditor, filed C.P(IB) No.51/BB/2019 under Section 7 of the I&B Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Bharath Hi-Tech Builders Pvt. Ltd. (Corporate Debtor) due to a default of Rs. 49,27,806/- consisting of principal, interest, and penal interest. The Corporate Debtor approached the Financial Creditor for settlement and requested time to make payment. The Financial Creditor agreed to settle upon receiving Rs. 34,00,000/- from the Corporate Debtor, comprising Rs. 30,00,000/- towards principal and Rs. 4,00,000/- towards interest.

## Facts

Mr. Xerxes Adi Shahiwalla (Financial Creditor) filed a petition against M/s. Bharath Hi-Tech Builders Pvt. Ltd. (Corporate Debtor) under Section 7 of the I&B Code, 2016, claiming a default of Rs. 49,27,806/-. This amount included principal, interest, and penal interest as of May 31, 2018. The Corporate Debtor sought settlement, and the Financial Creditor agreed to accept Rs. 34,00,000/- in full settlement. The Corporate Debtor assured payment in five equal installments via post-dated cheques. The Financial Creditor agreed to forego additional interest and legal fees. The Corporate Debtor had already paid Rs. 80,479/- towards interest. The balance amount of Rs. 33,19,521/- (Rs. 30,00,000/- principal and Rs. 3,19,521/- interest) was to be paid in five installments

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## Issues and analysis

### Issue 1: Whether the petitioner should be allowed to withdraw the petition based on the consent terms agreed …

**Ratio:** A petitioner may be allowed to withdraw a petition if the parties have reached a

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**Reasoning:** The Tribunal considered the Consent Terms submitted by both parties, indicating a

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**Interpretation:** This reflects the principle that courts and tribunals generally encourage

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**Application:** The NCLT applied this principle by allowing Mr. Xerxes Adi Shahiwalla to

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Mr.Xerxes Adi…
- **Respondents:** M/s Bharath Hi…; M/s.Bharath…

## Timeline

- **2019-09-30 — Date of…**: Order issued by the…
- **2019-09-30 — Consent Term…**: Consent Terms submitted by the…

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