# In the matter of Excel Intelligence Services Pvt. Ltd. C.P. (IB) No.45-BB-2019

> NCLT judgment dated 2019-02-18. Citation: TCN-2019-NCLT-04810. The case originates from C.P. (IB) No.45/BB/2019 filed by Shri J. Seshadri, the Financial…

- **Court:** NCLT
- **Order date:** 18 Feb 2019
- **Citation:** TCN-2019-NCLT-04810
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/excel-intelligence-services-pvt-ltd-cp-ib-no45-bb-2019-6bca4a9a

## Summary

### Background

The case originates from C.P. (IB) No.45/BB/2019 filed by Shri J. Seshadri, the Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The application sought to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Excel Intelligence Services Private Limited, the Corporate Debtor, due to a default amounting to Rs. 6,36,036/-.

## Facts

Shri J. Seshadri, the Financial Creditor, initiated proceedings against M/s. Excel Intelligence Services Private Limited, the Corporate Debtor, under Section 7 of the IBC, 2016, due to a default of Rs. 6,36,036/-. Prior to any significant progress in the CIRP, the Financial Creditor and the Corporate Debtor reached an out-of-court settlement. As part of this settlement, the Corporate Debtor agreed to pay Rs. 6,67,134/- to the Financial Creditor, which was paid via Demand Draft No. 001875 dated 08/02/2019. Following the settlement, the Financial Creditor filed a memo before the NCLT, Bengaluru Bench, requesting the dismissal of the petition as withdrawn. The Corporate Debtor's counsel did not object to the withdrawal. The NCLT, Bengaluru Bench, considered the settlement

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## Issues and analysis

### Issue 1: Whether the Tribunal should allow the withdrawal of the application under Section 7 of the IBC, …

**Ratio:** The legal principle applied is that the Tribunal has the discretion to allow the

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**Reasoning:** The Tribunal reasoned that since the Financial Creditor and the Corporate Debtor had

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**Interpretation:** The interpretation of Section 7 of the IBC, 2016, in this context is that while

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**Application:** In this specific case, the ratio and reasoning were applied to the facts by

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** J. Sesh…
- **Respondents:** M/s. Excel…

## Timeline

- **2019-02-08 — Demand Draft…**: Corporate Debtor paid Rs.…
- **2019-02-16 — Memo Fil…**: Financial Creditor filed a memo requesting the dismissal of the company petition as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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