# In the matter of Brick Town Developers Pvt. Ltd. CP No. (IB)20-ALD-2020

> NCLT judgment dated 2022-01-03. Citation: TCN-2022-NCLT-04568. The case pertains to CP No. (IB)20/ALD/2020 filed before the National Company Law Tribunal,…

- **Court:** NCLT
- **Order date:** 3 Jan 2022
- **Citation:** TCN-2022-NCLT-04568
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/brick-town-developers-pvt-ltd-cp-no-ib20-ald-2020-f3571129

## Summary

### Background

The case pertains to CP No. (IB)20/ALD/2020 filed before the National Company Law Tribunal, Allahabad Bench. The operational creditor sought to withdraw the petition based on an out-of-court settlement.

## Facts

The operational creditor, Design Radiance Pvt Ltd, filed a petition (CP No. (IB)20/ALD/2020) against Brick Town Developers Pvt Ltd. During the proceedings, the operational creditor's counsel sought leave to withdraw the petition, citing an out-of-court settlement. The NCLT, Allahabad Bench, considered the submission and dismissed the petition as withdrawn. The key fact is the settlement reached outside of court, leading to the withdrawal of the petition.

## Issues and analysis

### Issue 1: Whether the operational creditor can withdraw the …

**Ratio:** An operational creditor is generally permitted to withdraw a petition if a settlement has

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**Reasoning:** The court reasoned that since the operational creditor and the corporate debtor have

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

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**Application:** In this case, the operational creditor's counsel stated that a settlement had

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Design Radiance…
- **Respondents:** Brick Town…

## Timeline

- **2022-01-03 — Hearing…**: Hearing held on January…
- **2020-01-01 — Case Fil…**: CP No. (IB)20/ALD/2020…

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