# In the matter of Gajanan Solvex Ltd. C.P. (IB)=662-(MB)-2019

> NCLT judgment dated 2019-07-01. Citation: TCN-2019-NCLT-02732. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 1 Jul 2019
- **Citation:** TCN-2019-NCLT-02732
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gajanan-solvex-ltd-cp-ib662-mb-2019-59650cd1

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code (I&B Code). The applicant, also the financial creditor, initially pursued proceedings against the corporate debtor. However, the management of the applicant has since resolved not to continue with the proceedings and seeks to withdraw the Corporate Petition (CP).

## Facts

United Petro Finance Ltd., the applicant and financial creditor, initiated proceedings against M/s. Gajanan Solvex Ltd. under Section 7 of the Insolvency and Bankruptcy Code by filing CP-662/2019. Subsequently, the management of United Petro Finance Ltd. resolved not to pursue the proceedings. A withdrawal memo dated 01.07.2019 was filed. The applicant sought permission to withdraw the CP with the liberty to file a fresh petition or adopt appropriate proceedings in the future. The court granted permission to withdraw the CP, noting that the petitioner is free to take due recourse as per law if the debt is not paid.

## Issues and analysis

### Issue 1: Whether the applicant can be permitted to withdraw the Corporate Petition (CP-662/2019) filed under …

**Ratio:** An applicant can withdraw a petition filed under Section 7 of the Insolvency and

…

**Reasoning:** The court considered the applicant's resolution not to pursue the proceedings as a valid

…

**Interpretation:** The interpretation is that the adjudicating authority has the power to allow

…

**Application:** In this case, the applicant's resolution not to pursue the proceedings was

…

## Parties

- **Judges:** M.K. Sh…
- **Appellants:** United Petro…
- **Respondents:** M/s. Gajanan…

## Timeline

- **2019-07-01 — Withdrawal Me…**: Withdrawal Memo dated 01.07.2019 is…
- **2019-07-01 — Order Da…**: Order passed on 01.07.2019, granting…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/gajanan-solvex-ltd-cp-ib662-mb-2019-59650cd1