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

> NCLT judgment dated 2019-06-14. Citation: TCN-2019-NCLT-02894. 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-02894
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/digvive-services-pvt-ltd-ib-257-nd-2019-fbec9763

## 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/- and five Post-Dated Cheques (PDCs) to the Operational Creditor's counsel for full and final settlement of the claim.

## 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. A compromise was reached where the Corporate Debtor (presumably Digvive Services Pvt Ltd) tendered a Demand Draft of Rs. 6,00,000/- and five Post-Dated Cheques (PDCs) to the Operational Creditor's counsel. The Operational Creditor's counsel accepted the settlement subject to the clearance of the PDCs and requested to withdraw the petition. The court dismissed the petition as withdrawn, but granted liberty to the Operational Creditor to seek restoration if any of the PDCs are dishonored. The key fact is the settlement reached between the parties, leading to the withdrawal of the petition, conditional on the clearance of the PDCs.

## Issues and analysis

### Issue 1: Whether the petition under Section 9 of the IBC Code can be dismissed as withdrawn based on a …

**Ratio:** A petition can be dismissed as withdrawn if the parties reach a settlement and the

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**Reasoning:** The court acknowledged the settlement reached between the parties and the request of the

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

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**Application:** In this case, the settlement involved the Corporate Debtor tendering a Demand

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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…

## 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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