# In the matter of Bluetown (India) Pvt. Ltd. IB-442-ND-2020

> NCLT judgment dated 2020-07-24. Citation: TCN-2020-NCLT-00971. The case involves an insolvency petition filed under Section 9 of the IBC by Mr. Varun Jain…

- **Court:** NCLT
- **Order date:** 24 Jul 2020
- **Citation:** TCN-2020-NCLT-00971
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bluetown-india-pvt-ltd-ib-442-nd-2020-c7a73893

## Summary

### Background

The case involves an insolvency petition filed under Section 9 of the IBC by Mr. Varun Jain against M/s. Bluetown (India) Pvt. Ltd. The parties entered into a settlement agreement dated 02.07.2020, and the operational creditor sought to withdraw the insolvency petition.

## Facts

Mr. Varun Jain, the operational creditor, filed an insolvency petition against M/s. Bluetown (India) Pvt. Ltd., the corporate debtor, under Section 9 of the IBC. Subsequently, both parties entered into a settlement agreement dated 02.07.2020. The settlement deed stipulated that the operational creditor would file an application for withdrawal of the insolvency petition. The agreement also included a clause stating that if the corporate debtor fails to make payments as agreed, the operational creditor could revive the litigation. The operational creditor then filed an application to withdraw the insolvency petition, which was considered by the NCLT.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the insolvency petition should be allowed based on the …

**Ratio:** The court has the discretion to allow the withdrawal of an insolvency petition if the

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**Reasoning:** The court considered the submissions of both parties' counsels, who confirmed the

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**Interpretation:** Rule 11 of the NCLT Rules, 2016 allows for the withdrawal of applications under

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**Application:** In this case, the operational creditor and the corporate debtor entered into a

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## Parties

- **Judges:** P.S.N. P…; V.K. SUB…
- **Appellants:** Varun…
- **Respondents:** M/s. Bluetown…

## Timeline

- **2020-02-07 — Settlement Agreement…**: The parties entered into…
- **2020-07-24 — Order Del…**: The NCLT delivered the order dismissing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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