# In the matter of Colorhome Developers Pvt. Ltd. IBA-754- 2019

> NCLT judgment dated 2019-12-31. Citation: TCN-2019-NCLT-00009. The case involves a petition under the Insolvency and Bankruptcy Code (IBC). The parties…

- **Court:** NCLT
- **Order date:** 31 Dec 2019
- **Citation:** TCN-2019-NCLT-00009
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/colorhome-developers-pvt-ltd-iba-754-2019-47047f97

## Summary

### Background

The case involves a petition under the Insolvency and Bankruptcy Code (IBC). The parties involved have chosen to settle the matter amicably. The petitioner seeks to withdraw the petition with the liberty to approach the tribunal again if the corporate debtor fails to adhere to the terms of the settlement.

## Facts

The petition was filed under the Insolvency and Bankruptcy Code (IBC). The parties involved decided to settle the matter amicably. A settlement was reached on 2019-12-04. The petitioner requested to withdraw the petition with the liberty to approach the tribunal again if the corporate debtor fails to adhere to the terms of the settlement. The court considered the representation of counsel for both parties and Rule 8 of the I&B (Application to Adjudicating Authority) Rules, 2016. The court dismissed the petition as withdrawn and ordered the files to be recorded. The petitioner was granted the liberty to file a fresh petition if the corporate debtor fails to adhere to the settlement terms.

## Issues and analysis

### Issue 1: Whether the petitioner should be allowed to withdraw the petition based on the settlement reached …

**Ratio:** A petition can be withdrawn if the parties have reached a settlement and the petitioner

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**Reasoning:** The court considered the representation of counsel for both parties, indicating agreement

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**Interpretation:** This aligns with the principle of encouraging settlement in insolvency

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**Application:** The court applied this principle by allowing the petitioner to withdraw the

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** ABISHEK…
- **Respondents:** COLORHOME…

## Timeline

- **2019-12-04 — Settlemen…**: The parties arrived at…
- **2019-12-16 — Order Da…**: The court dismissed the…

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