# In the matter of Bhoruka Power Corporation Ltd. C.P. (IB) No. 226-BB-2019

> NCLT judgment dated 2019-07-31. Citation: TCN-2019-NCLT-02166. The case pertains to C.P. (IB) No.226/BB/2019 filed by M/s. Socrato Capital Private Limited…

- **Court:** NCLT
- **Order date:** 31 Jul 2019
- **Citation:** TCN-2019-NCLT-02166
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bhoruka-power-corporation-ltd-cp-ib-no-226-bb-2019-2859c7be

## Summary

### Background

The case pertains to C.P. (IB) No.226/BB/2019 filed by M/s. Socrato Capital Private Limited (Financial Creditor) under Section 7 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Bhoruka Power Corporation Limited (Corporate Debtor) due to default on a total outstanding amount of Rs. 10,90,301/-, including principal and interest. The case was listed for admission on multiple dates and adjourned for various reasons, including completion of pleadings and settlement discussions.

## Facts

M/s. Socrato Capital Private Limited, the Financial Creditor, filed C.P. (IB) No.226/BB/2019 under Section 7 of the IBC, 2016, to initiate CIRP against M/s. Bhoruka Power Corporation Limited, the Corporate Debtor. The basis for the petition was a default on an outstanding amount of Rs. 10,90,301/-, comprising Rs. 10,00,000/- as principal and Rs. 90,301/- as interest. The case was listed on multiple dates for admission but was adjourned to allow for completion of pleadings and settlement discussions. Ultimately, the parties reached an amicable settlement, leading the Financial Creditor to seek withdrawal of the petition, which the Tribunal permitted, reserving the right to refile if the settlement terms are not met. The key fact is the amicable settlement leading to the

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## Issues and analysis

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

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

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**Reasoning:** The Tribunal acknowledged the submissions of both parties and the memo filed by the

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**Interpretation:** The interpretation is that the Tribunal prioritizes amicable settlements

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**Application:** Given the amicable settlement between M/s. Socrato Capital Private Limited and

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s. Socrato…
- **Respondents:** M/s. Bhoruka…
- **Advocates:** Tarunn S…; Samarth Shr…

## Timeline

- **2019-07-05 — Case Listed for…**: The case was initially listed…
- **2019-07-12 — 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)

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