# In the matter of Color Home Developers Pvt. Ltd. IBA-891-2019

> NCLT judgment dated 2019-12-31. Citation: TCN-2019-NCLT-00006. The case involves a petition filed under the Insolvency and Bankruptcy Code (IBC). A memo of…

- **Court:** NCLT
- **Order date:** 31 Dec 2019
- **Citation:** TCN-2019-NCLT-00006
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/color-home-developers-pvt-ltd-iba-891-2019-b8150702

## Summary

### Background

The case involves a petition filed under the Insolvency and Bankruptcy Code (IBC). A memo of settlement was executed by both the petitioner and the respondent, and filed with the Registry of the Tribunal on 2019-12-23. The petitioner requested permission to withdraw the petition, with the liberty to approach the Tribunal again if the terms of the settlement are not adhered to by the Corporate Debtor.

## Facts

Prism Johnson Ltd filed a petition against Color Home Developers Pvt Ltd. Both parties executed a memo of settlement. The memo of settlement was filed on 2019-12-23. The petitioner requested to withdraw the petition with the liberty to approach the Tribunal again if the terms of the settlement are not adhered to by the Corporate Debtor. The settlement involves a balance payment.

## Issues and analysis

### Issue 1: Whether the petition can be withdrawn based on the joint memo of settlement executed by both …

**Ratio:** Rule 8 of the I&B (Application to Adjudicating Authority) Rules, 2016 allows for the

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**Reasoning:** The Tribunal considered the representation made by the parties that a memo of settlement

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**Interpretation:** The interpretation of Rule 8 allows the Tribunal to consider settlements

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**Application:** In this case, the existence of a joint memo of settlement between Prism Johnson

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## Parties

- **Judges:** SHRIR VARAD…; SHRI. ANIL…
- **Appellants:** Prism Johns…
- **Respondents:** COLOR HOME…

## Timeline

- **2019-12-23 — Filing of Joint Memo of…**: The joint memo of settlement was filed…
- **2019-12-31 — Order Da…**: The Tribunal passed an order…

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