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

> NCLT judgment dated 2019-09-24. Citation: TCN-2019-NCLT-01294. 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-01294
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/j-s-hospitality-services-pvt-ltdib-374nd-2019-59055d00

## 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 However, prior to the pronouncement of the order, a compromise was reached between the parties, and the petition was withdrawn on August 21, 2019.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 Insolvency and Bankruptcy Code (IBC), 2016. The petition was initially admitted, and an IRP was appointed. However, before the order was formally pronounced, the parties reached a compromise, and the petition was withdrawn on August 21, 2019. The court noted that the pronouncement of the order on August 23, 2019, was inadvertent due to the prior withdrawal of the petition.

## 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 invalid

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**Reasoning:** The court reasoned that since the petition had been withdrawn before the pronouncement of

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**Interpretation:** The interpretation is that once a petition is withdrawn, any subsequent order

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**Application:** In this case, the petition was withdrawn on August 21, 2019. Therefore, the

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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- **2019-08-21 — Petition Wit…**: The petition was withdrawn by the petitioner after a compromise was reached between the…
- **2019-08-23 — Order Pronou…**: The order was pronounced, but it was later deemed nonest due to the prior withdrawal of…

## 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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