# In the matter of Harish Textile Engineers Ltd.

> NCLT judgment dated 2021-03-09. Citation: TCN-2021-NCLT-02772. The matter pertains to an application (I.A. 456/2021) filed in connection with a Corporate…

- **Court:** NCLT
- **Order date:** 9 Mar 2021
- **Citation:** TCN-2021-NCLT-02772
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/harish-textile-engineers-ltd-0c2390c2

## Summary

### Background

The matter pertains to an application (I.A. 456/2021) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated under Section 9 of the Insolvency and Bankruptcy Code, 2016. The main IB petition (2337/2019) was admitted on 03.02.2021, and an Interim Resolution Professional (IRP), Mr. Devendra Singh, was appointed. Before the constitution of the Committee of Creditors (CoC), the parties reached a settlement. The RP received Rs. 9,85,690/- as full and final settlement.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Harish Textile Engineers Pvt Ltd under Section 9 of the Insolvency and Bankruptcy Code, 2016. The main IB petition no. 2337/2019 was admitted on 03.02.2021. Mr. Devendra Singh was appointed as the Interim Resolution Professional (IRP). Before the constitution of the Committee of Creditors (CoC), the parties reached a settlement. The Resolution Professional (RP) received Rs. 9,85,690/- as full and final settlement of the main petition. The settlement was brought to the notice of the National Company Law Tribunal (NCLT), Mumbai Bench. The NCLT considered the settlement and the Supreme Court's decision in Suiss Rebbon Vs. Union of India, which allows for withdrawal of the petition before the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can allow the withdrawal of an insolvency petition after its …

**Ratio:** The ratio is based on the Supreme Court's ruling in Suiss Rebbon Vs. Union of India,

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**Reasoning:** The court reasoned that since the parties had reached a settlement before the CoC was

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**Interpretation:** The interpretation is that the Supreme Court's decision in Suiss Rebbon Vs.

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**Application:** In this specific case, the court applied the ratio and reasoning by allowing

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## Parties

- **Judges:** Harihar Prakash…; Shyam Babu…
- **Respondents:** Harish Textile…

## Timeline

- **2019-01-01 — Main IB Petiti…**: The main IB petition…
- **2021-02-03 — IB Petition A…**: The main IB petition no.…

## 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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