# In the matter of India Sports Flashes Pvt. Ltd. CA No. 172-2019 in (IB)-1250-ND-2018

> NCLT judgment dated 2019-05-28. Citation: TCN-2019-NCLT-03174. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 28 May 2019
- **Citation:** TCN-2019-NCLT-03174
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/india-sports-flashes-pvt-ltd-ca-no-172-2019-in-ib-1250-nd-2018-efa769b8

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code (IBC). M/s Rationalheads Technologies Pvt Ltd is the applicant, and M/s India Sports Flashes Pvt Ltd is the respondent. The IRP filed an application for withdrawal of the Insolvency Application. CA No. 172/2019 was filed under Rule 11 of NCLT Rules seeking withdrawal of IB-1250/ND/2018.

## Facts

M/s Rationalheads Technologies Pvt Ltd initiated insolvency proceedings against M/s India Sports Flashes Pvt Ltd under Section 9 of the IBC. An IRP was appointed. Subsequently, a settlement agreement was reached between the Operational Creditor and the Corporate Debtor. The Operational Creditor received Rs. 7,50,000/-. The IRP then filed an application to withdraw the insolvency application. The authorized representative of the Corporate Debtor and the director of the applicant were present during the proceedings. The court considered the settlement agreement and the payment received by the Operational Creditor as relevant factors in allowing the withdrawal.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the insolvency application should be allowed given the …

**Ratio:** The court has the discretion to allow the withdrawal of an insolvency application if a

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**Reasoning:** The court considered the fact that a settlement agreement was placed on record and that

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**Interpretation:** This case interprets the provisions of the IBC and the NCLT Rules regarding the

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where a

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## Parties

- **Judges:** DEEPTI M…; Pradeep R.…
- **Appellants:** M/s Rationalheads…
- **Respondents:** M/s India Sports…

## Timeline

- **2019-05-08 — IRP Appoi…**: IRP appointed by the…
- **2019-05-28 — Order Del…**: Order delivered on 28.05.2019,…

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