# 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-02979. The case pertains to CP(IB) No. 236/9/NCLT/AHM/2019 before the Ahmedabad Bench of the National…

- **Court:** NCLT
- **Order date:** 11 Jun 2019
- **Citation:** TCN-2019-NCLT-02979
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ethan-textiles-india-pvt-ltd-cp-ib-no-236-9-nclt-ahm-2019-add8a9dc

## Summary

### Background

The case pertains to CP(IB) 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 and Ethan Textiles India Pvt. Ltd. as the respondent. The petitioner sought to withdraw the instant petition due to a settlement between the parties.

## Facts

Kali Dyechem Pvt. Ltd. filed an insolvency petition against Ethan Textiles India Pvt. Ltd. under Section 9 of the Insolvency and Bankruptcy Code. During the proceedings, a settlement was reached between the parties. Consequently, the petitioner's lawyer filed a pursis to withdraw the petition. The court granted permission for the withdrawal, leading to the dismissal of the petition.

## Issues and analysis

### Issue 1: Whether the petitioner can withdraw the insolvency petition based on a settlement reached with the …

**Ratio:** A petitioner is allowed to withdraw an insolvency petition if a settlement is reached

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**Reasoning:** The court reasoned that since the parties had reached a settlement, allowing the

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**Interpretation:** This interpretation allows for flexibility in insolvency proceedings,

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

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## Parties

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

## Timeline

- **2019-06-11 — Hearing of Ahmedabad…**: Hearing of the Ahmedabad Bench of…
- **2019-06-11 — Petition Wit…**: Learned lawyer filed pursis to withdraw the instant petition due to settlement between…

## 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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