# In the matter of Chartered Mercantile Mutual Benefit Ltd. IA No. 233-2021 in Company Petition (IB)No. 506-ALD-2019.

> NCLT judgment dated 2021-08-02. Citation: TCN-2021-NCLT-01513. IA No. 233/2021 was filed in CP No.(IB) 506/ALD/2019 under Section 12A of IBC read with Rule 11…

- **Court:** NCLT
- **Order date:** 2 Aug 2021
- **Citation:** TCN-2021-NCLT-01513
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/chartered-mercantile-mutual-benefit-ltd-ia-no-233-2021-in-company-petition-ibno-d0661898

## Summary

### Background

IA No. 233/2021 was filed in CP No.(IB) 506/ALD/2019 under Section 12A of IBC read with Rule 11 of NCLT Rules for the withdrawal of the petition based on a compromise reached between the parties on 23.07.2021. A copy of the compromise was attached as Exhibit D.

## Facts

The applicant filed IA No. 233/2021 in CP No.(IB) 506/ALD/2019 seeking withdrawal of the petition under Section 12A of IBC read with Rule 11 of NCLT Rules, citing a compromise agreement dated 2021-07-23. The applicant's counsel requested the application be kept pending until the full amount was realized. The respondent's counsel stated the matter was amicably settled and the application should be dismissed. The court noted that keeping the proceedings pending would serve no useful purpose. The parties had reached a compromise, leading to the request for withdrawal. The compromise agreement is a key fact, influencing the court's decision to dismiss the petition.

## Issues and analysis

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

**Ratio:** A petition can be withdrawn if the parties have reached a compromise and amicably settled

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**Reasoning:** The court considered the submissions of both counsels and noted that the parties had

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**Interpretation:** This interprets Section 12A of IBC and Rule 11 of NCLT Rules, allowing for

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**Application:** The court applied this principle to the present case, where the parties had

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** M/S SUPREME…
- **Respondents:** M/S CHARTERED…
- **Advocates:** Amitabh A…; Nitin S…

## Timeline

- **2021-07-23 — Compromise Ag…**: Parties amicably settled the matter,…
- **2021-08-02 — Court He…**: The court heard the counsels and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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