# In the matter of Galaxy Machinery Pvt. Ltd. CP(IB) No. 188-BB-2020

> NCLT judgment dated 2020-08-10. Citation: TCN-2020-NCLT-00882. The case involves C.P.(IB)No.188/BB/2020 filed by M/s. Cotmac Electronics Private Limited…

- **Court:** NCLT
- **Order date:** 10 Aug 2020
- **Citation:** TCN-2020-NCLT-00882
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/galaxy-machinery-pvt-ltd-cpib-no-188-bb-2020-e8ac4604

## Summary

### Background

The case involves C.P.(IB)No.188/BB/2020 filed by M/s. Cotmac Electronics Private Limited ('Petitioner/Operational Creditor') under Section 9 of the IBC, 2016, read with Rule 6 of I&B (AAA) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Galaxy Machinery Private Limited ('Respondent/Corporate Debtor'). The petitioner claimed that the respondent defaulted on a payment of Rs. 22,66,734, including principal and interest at 36% p.a.

## Facts

M/s. Cotmac Electronics Private Limited, the operational creditor, filed C.P.(IB)No.188/BB/2020 under Section 9 of the IBC, 2016, seeking to initiate CIRP against M/s. Galaxy Machinery Private Limited, the corporate debtor. The basis for the petition was a default of Rs. 22,66,734, including principal and interest at 36% p.a. The parties subsequently reached an amicable settlement, documented in a Deed of Settlement dated 2020-07-16. The petitioner then sought to withdraw the petition. The court noted that the petition had not yet been admitted.

## Issues and analysis

### Issue 1: Whether the petitioner should be permitted to withdraw the company petition given the amicable …

**Ratio:** A company petition can be withdrawn if the parties have amicably settled the issue and

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**Reasoning:** The court reasoned that since the parties had mutually settled the issue as per the Deed

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

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**Application:** The ratio was applied to the specific facts of the case, where the petitioner

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** Cotmac Electronics…
- **Respondents:** Galaxy Machinery…

## Timeline

- **2020-07-16 — Deed of Set…**: Parties entered into a…
- **2020-08-10 — Order Da…**: C.P.(IB)No.188/BB/2020 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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