# In the matter of Jai laxmi Lighting Industries Pvt. Ltd. CP (IB) No. 80-Chd-Hry-2018

> NCLT judgment dated 2018-04-10. Citation: TCN-2018-NCLT-01569. The case involves M/s Paper Creations as the petitioner and Jai Laxmi Lighting Industries (P)…

- **Court:** NCLT
- **Order date:** 10 Apr 2018
- **Citation:** TCN-2018-NCLT-01569
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jai-laxmi-lighting-industries-pvt-ltd-cp-ib-no-80-chd-hry-2018-8b4c7efd

## Summary

### Background

The case involves M/s Paper Creations as the petitioner and Jai Laxmi Lighting Industries (P) Ltd. as the respondent. The petition was filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The petitioner sought to withdraw the instant petition.

## Facts

M/s Paper Creations filed a petition against Jai Laxmi Lighting Industries (P) Ltd. under Section 9 of the IBC, 2016. The petitioner sought to withdraw the petition because the demand notice, as required by Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, was not sent before filing the petition. The absence of the demand notice is a procedural deficiency that could impact the admissibility and maintainability of the petition. The petitioner was granted the liberty to file a fresh petition on the same cause of action.

## Issues and analysis

### Issue 1: Whether the petitioner should be allowed to withdraw the petition due to non-compliance with Rule 5 …

**Ratio:** A petition can be withdrawn if there is a procedural defect, such as non-compliance with

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**Reasoning:** The court reasoned that the demand notice, as prescribed in Rule 5 of the Insolvency and

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**Interpretation:** Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority)

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**Application:** In this case, the petitioner admitted that the demand notice was not sent

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** M/s Paper…
- **Respondents:** Jai Laxmi…
- **Advocates:** Ranjit K…

## Timeline

- **2018-04-10 — Order Del…**: Order delivered on the petition, allowing withdrawal with liberty to file a fresh…

## 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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