# In the matter of Bhoruka Power Corporation Ltd. C.P. (IB) No. 198-BB-2019

> NCLT judgment dated 2019-07-31. Citation: TCN-2019-NCLT-02167. Kunal Finance & Credit Pvt. Ltd. filed C.P. (IB) No.198/BB/2019 under Section 7 of the IBC,…

- **Court:** NCLT
- **Order date:** 31 Jul 2019
- **Citation:** TCN-2019-NCLT-02167
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhoruka-power-corporation-ltd-cp-ib-no-198-bb-2019-3f80c5d4

## Summary

### Background

Kunal Finance & Credit Pvt. Ltd. filed C.P. (IB) No.198/BB/2019 under Section 7 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Bhoruka Power Corporation Limited, the Corporate Debtor, due to a default of Rs. 1,36,24,382/-, including principal and interest. The case was listed on multiple dates for admission but was adjourned at the request of the parties to allow for completion of pleadings and settlement discussions.

## Facts

Kunal Finance & Credit Pvt. Ltd. initiated CIRP against Bhoruka Power Corporation Limited under Section 7 of the IBC, claiming a default of Rs. 1,36,24,382/-, comprising Rs. 1,25,00,000/- principal and Rs. 11,24,382/- interest. The case was listed for admission on 11.06.2019, 09.07.2019, 15.07.2019, 26.07.2019, and 31.07.2019 but was adjourned for settlement. Both parties' counsels submitted that the issue had been settled amicably. The Petitioner sought to withdraw the petition, which the Tribunal permitted, reserving the right to file a fresh case if the Respondent defaults on the settlement terms. The key fact is the amicable settlement leading to the withdrawal of the CIRP application.

## Issues and analysis

### Issue 1: Whether the Tribunal should permit the Petitioner to withdraw the Company Petition given the …

**Ratio:** The Tribunal has the discretion to allow the withdrawal of a Company Petition, especially

…

**Reasoning:** The Tribunal acknowledged the submissions of both counsels regarding the settlement.

…

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

…

**Application:** The Tribunal applied this principle by allowing Kunal Finance & Credit Pvt.

…

## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** Kunal Finance &…
- **Respondents:** Bhoruka Power…
- **Advocates:** Tarunn S…; Samarth Shr…

## Timeline

- **2019-06-11 — Case Listed for…**: The case was initially listed…
- **2019-07-09 — Case Listed for…**: The case was listed for…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/bhoruka-power-corporation-ltd-cp-ib-no-198-bb-2019-3f80c5d4