# In the matter of Hyquip System Ltd. CP(IB) No.517-9-HDB-2018

> NCLT judgment dated 2019-08-26. Citation: TCN-2019-NCLT-01791. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 26 Aug 2019
- **Citation:** TCN-2019-NCLT-01791
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hyquip-system-ltd-cpib-no517-9-hdb-2018-04e71fcf

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, filed by Southern Plantaids Pvt Ltd, an operational creditor, against Hyquip System Ltd, the corporate debtor. The operational creditor sought initiation of the corporate insolvency resolution process (CIRP) against the corporate debtor for unpaid operational debt. The petition was filed before the National Company Law Tribunal (NCLT), Hyderabad Bench.

## Facts

Southern Plantaids Pvt Ltd, the operational creditor, filed a petition under Section 9 of the IBC against Hyquip System Ltd, the corporate debtor, for unpaid operational debt. The operational creditor's counsel stated that the corporate debtor had paid the entire principal amount along with interest of Rs. 1,50,000/-. The operational creditor then filed a withdrawal memo stating that the entire claim amount was settled. The petition had not yet been admitted by the NCLT. The operational creditor sought to withdraw the petition under Rule 8 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The key fact is the settlement of the debt, which led to the withdrawal request.

## Issues and analysis

### Issue 1: Whether the operational creditor can be granted permission to withdraw the petition filed under …

**Ratio:** An operational creditor can withdraw a petition filed under Section 9 of the IBC, 2016,

…

**Reasoning:** The court reasoned that since the petition was not yet admitted and the operational

…

**Interpretation:** The interpretation of the IBC and related rules allows for the withdrawal of a

…

**Application:** In this case, the operational creditor stated that the corporate debtor had

…

## Parties

- **Judges:** Ratakonda…; Narender Kumar…
- **Appellants:** Southern Plantaids…
- **Respondents:** Hyquip Syst…

## Timeline

- **2018-01-01 — Filing of CP(IB) No.…**: Southern Plantaids Pvt Ltd filed a petition under Section 9 of the IBC against Hyquip…
- **2019-08-26 — Hearing…**: Hearing held on 26.08.2019 where the operational creditor's counsel stated that the…

## 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)

---

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/hyquip-system-ltd-cpib-no517-9-hdb-2018-04e71fcf