# In the matter of Entertainment City Ltd. (IB)-1303(PB)-2019

> NCLT judgment dated 2019-07-17. Citation: TCN-2019-NCLT-02459. The case involves M/s. Vinayak Laser Tech Pvt. Ltd. as the applicant/petitioner and M/s.…

- **Court:** NCLT
- **Order date:** 17 Jul 2019
- **Citation:** TCN-2019-NCLT-02459
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/entertainment-city-ltd-ib-1303pb-2019-d8d67124

## Summary

### Background

The case involves M/s. Vinayak Laser Tech Pvt. Ltd. as the applicant/petitioner and M/s. Entertainment City Ltd. as the respondent. The matter was brought before the National Company Law Tribunal (NCLT), New Delhi, under Section 9 of the Insolvency & Bankruptcy Code, 2016.

## Facts

M/s. Vinayak Laser Tech Pvt. Ltd. filed a petition against M/s. Entertainment City Ltd. under Section 9 of the Insolvency & Bankruptcy Code, 2016. The petitioner's counsel stated that the matter was settled, and a demand draft of Rs. 10,18,814/- dated 11.07.2019, drawn on Axis Bank, was handed over as settlement. Consequently, the petitioner applied for withdrawal of the petition. The key fact is the settlement between the parties leading to the withdrawal request.

## Issues and analysis

### Issue 1: Whether the petition filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 can be …

**Ratio:** A petition can be withdrawn if the parties have reached a settlement and the claim stands

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**Reasoning:** The court accepted the submission of the petitioner's counsel that the matter was settled

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**Interpretation:** This interprets the provisions of the IBC to allow for withdrawal of petitions

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** DEEPTI M…; SH. S.K MOH…
- **Appellants:** M/s. Vinayak…
- **Respondents:** M/s. Entertainment…

## Timeline

- **2019-07-11 — Demand Draf…**: Demand draft of Rs.…
- **2019-07-17 — Order Del…**: Order delivered by NCLT…

## 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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