# In the matter of J. S. Hospitality Services Pvt. Ltd.(IB)-374(ND)-2019

> NCLT judgment dated 2019-09-24. Citation: TCN-2019-NCLT-01283. The matter was listed on August 23, 2019, for the pronouncement of an order. The petition under…

- **Court:** NCLT
- **Order date:** 24 Sept 2019
- **Citation:** TCN-2019-NCLT-01283
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/j-s-hospitality-services-pvt-ltdib-374nd-2019-0007264c

## Summary

### Background

The matter was listed on August 23, 2019, for the pronouncement of an order. The petition under Section 9 of the IBC was previously admitted, and an Interim Resolution Professional (IRP) was appointed. However, prior to the pronouncement of the order, a compromise was reached between the parties, and the petition was withdrawn on August 21, 2019.

## Facts

M/s. Apavarga Trading Company filed a petition against M/s. J. S. Hospitality Services Pvt. Ltd. under Section 9 of the IBC Code, 2016. The petition was initially admitted, and an IRP was appointed. However, before the order could be formally pronounced, the parties reached a compromise, and the petitioner withdrew the petition on August 21, 2019. The court acknowledged the withdrawal and the IRP's confirmation that no steps had been taken. The pronouncement of the order on August 23, 2019, was deemed inadvertent and withdrawn.

## Issues and analysis

### Issue 1: Whether the pronouncement of the order on August 23, 2019, is valid given the prior withdrawal of …

**Ratio:** An order pronounced after the withdrawal of the underlying petition is considered nonest

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**Reasoning:** The court reasoned that since the petition had been withdrawn before the pronouncement of

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**Interpretation:** This legal analysis interprets the principle that a court order is only valid

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**Application:** In this case, the ratio and reasoning were applied to the specific facts where

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## Parties

- **Judges:** L. N. G…; Ina Mal…
- **Appellants:** M/s. Apavarga…
- **Respondents:** M/s. J. S.…

## Timeline

- **2019-08-21 — Petition Wit…**: The petition was withdrawn by the petitioner…
- **2019-08-23 — Order Pronou…**: The order was pronounced, but deemed nonest due…

## 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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