# In the matter of Ethan Textiles India Pvt. Ltd. C.P. (IB) No. 236-9-NCLT-AHM-2019

> NCLT judgment dated 2019-06-11. Citation: TCN-2019-NCLT-02973. The case pertains to C.P. (I.B) No. 236/9/NCLT/AHM/2019 before the Ahmedabad Bench of the…

- **Court:** NCLT
- **Order date:** 11 Jun 2019
- **Citation:** TCN-2019-NCLT-02973
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ethan-textiles-india-pvt-ltd-cp-ib-no-236-9-nclt-ahm-2019-a77541e2

## Summary

### Background

The case pertains to C.P. (I.B) No. 236/9/NCLT/AHM/2019 before the Ahmedabad Bench of the National Company Law Tribunal. The matter involves Kali Dyechem Pvt. Ltd. as the applicant/petitioner and Ethan Textiles India Pvt. Ltd. as the respondent. The petitioner sought to withdraw the instant petition due to a settlement reached between the parties.

## Facts

Kali Dyechem Pvt. Ltd. initiated insolvency proceedings against Ethan Textiles India Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code. The petitioner, Kali Dyechem Pvt. Ltd., subsequently sought to withdraw the petition. The reason for the withdrawal was a settlement reached between the parties. The petitioner's lawyer filed a pursis to formally request the withdrawal. The court considered the settlement and the withdrawal request.

## Issues and analysis

### Issue 1: Whether the petitioner should be granted permission to withdraw the insolvency petition in light of …

**Ratio:** A party is generally allowed to withdraw a petition if a settlement has been reached with

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**Reasoning:** The court reasoned that since a settlement had been reached between the petitioner and

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**Interpretation:** The interpretation is that the court acknowledges the importance of settlements

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**Application:** In this case, the court applied the principle by granting permission to the

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## Parties

- **Judges:** Manorama…
- **Appellants:** Kali Dyechem Pvt.…
- **Respondents:** Ethan Textiles…

## Timeline

- **2019-06-11 — Hearing…**: Hearing of Ahmedabad Bench of the…
- **2019-06-11 — Order Da…**: CP(IB) 236/2019 is…

## 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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