# In the matter of Digvive Services Pvt. Ltd. (IB)-257-(ND)-2019

> NCLT judgment dated 2019-06-14. Citation: TCN-2019-NCLT-02888. The case involves a petition under Section 9 of the IBC Code. A compromise was reached between…

- **Court:** NCLT
- **Order date:** 14 Jun 2019
- **Citation:** TCN-2019-NCLT-02888
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/digvive-services-pvt-ltd-ib-257-nd-2019-1b6013f8

## Summary

### Background

The case involves a petition under Section 9 of the IBC Code. A compromise was reached between T.V. Today Network Ltd (Applicant) and Digvive Services Pvt Ltd (Respondent). The Corporate Debtor tendered a Demand Draft of Rs. 6,00,000/- along with five post-dated cheques (PDCs) to the Operational Creditor's counsel as full and final settlement of their claim, subject to the clearance of the PDCs.

## Facts

T.V. Today Network Ltd, the Applicant, filed a petition against Digvive Services Pvt Ltd, the Respondent, under Section 9 of the IBC Code. During the proceedings, a compromise was reached between the parties. As part of the compromise, the Corporate Debtor (presumably Digvive Services Pvt Ltd) tendered a Demand Draft of Rs. 6,00,000/- and five post-dated cheques to the Operational Creditor's counsel. The Operational Creditor accepted these as full and final settlement, subject to the clearance of the post-dated cheques. The Applicant then sought to withdraw the petition based on this settlement. The court dismissed the petition as withdrawn, but granted liberty to the Applicant to seek restoration if any of the post-dated cheques are dishonored. The key fact is the

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## Issues and analysis

### Issue 1: Whether the petition filed under Section 9 of the IBC Code can be dismissed as withdrawn based on a …

**Ratio:** A petition can be withdrawn if the parties reach a settlement and the applicant seeks to

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**Reasoning:** The court acknowledged the settlement reached between the parties and the applicant's

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**Interpretation:** This reflects the principle that parties are free to settle their disputes and

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**Application:** In this case, the parties reached a compromise where the Corporate Debtor

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## Parties

- **Judges:** INA MALH…
- **Appellants:** T.V. Today…
- **Respondents:** Digvive Services…

## Timeline

- **2019-06-14 — Order Del…**: Order delivered on 14.06.2019, dismissing the petition as withdrawn with liberty to seek…

## 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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