# In the matter of Direct News Pvt. Ltd. IB-1478(PB)-2019

> NCLT judgment dated 2019-10-11. Citation: TCN-2019-NCLT-01023. The case involves a joint application filed under Rule 11 of NCLT Rules, 2016, seeking the…

- **Court:** NCLT
- **Order date:** 11 Oct 2019
- **Citation:** TCN-2019-NCLT-01023
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/direct-news-pvt-ltd-ib-1478pb-2019-760a4a35

## Summary

### Background

The case involves a joint application filed under Rule 11 of NCLT Rules, 2016, seeking the withdrawal of a petition (IB-1478(PB)/2019). The parties involved have amicably settled their disputes, and a settlement deed has been placed on record. The Corporate Insolvency Resolution Process (CIRP) was initiated in this case on 30.09.2019.

## Facts

Omega Finvest LLP initiated a Corporate Insolvency Resolution Process (CIRP) against Direct News Pvt Ltd. A joint application was filed under Rule 11 of NCLT Rules, 2016, seeking withdrawal of the petition (IB-1478(PB)/2019) because the parties settled their disputes amicably. The CIRP was initiated on 30.09.2019. The Interim Resolution Professional (IRP), Sanjeev Gupta, confirmed receiving Rs. 1,03,316/- towards full payment of CIRP costs. The settlement deed was placed on record. The court considered the Supreme Court's view in Swiss Ribbons Pvt. Ltd. v. Union of India and Ors. regarding withdrawal of petitions.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the petition (IB-1478(PB)/2019) should be allowed given …

**Ratio:** The legal principle applied is that parties are allowed to settle their disputes

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**Reasoning:** The court reasoned that since the parties had settled their disputes amicably and filed a

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**Interpretation:** The interpretation is that the NCLT Rules allow for the withdrawal of a

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**Application:** In this specific case, the parties, Omega Finvest LLP and Direct News Pvt Ltd.,

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## Parties

- **Judges:** M. M. K…; Saroj Ra…
- **Appellants:** Omega Finve…
- **Respondents:** Direct News Pvt…

## Timeline

- **2019-01-25 — Swiss Ribbons Pvt. Ltd.…**: Supreme Court's judgment in Swiss Ribbons Pvt. Ltd. & Anr. v. Union of India and Ors.…
- **2019-09-30 — CIRP Init…**: Corporate Insolvency Resolution Process…

## 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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