# In the matter of Kiri Industries Ltd. IA 60-2017 with C.P. (IB) No. 2-9-NCLT-AHM-2017

> NCLT judgment dated 2017-04-06. Citation: TCN-2017-NCLT-00923. The case involves an application filed by a Financial Creditor under Section 7 of the…

- **Court:** NCLT
- **Order date:** 6 Apr 2017
- **Citation:** TCN-2017-NCLT-00923
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/kiri-industries-ltd-ia-60-2017-with-cp-ib-no-2-9-nclt-ahm-2017-71b24f4c

## Summary

### Background

The case involves an application filed by a Financial Creditor under Section 7 of the Insolvency and Bankruptcy Code, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The Applicant Financial Creditor sought to withdraw the petition based on a settlement. Notice was issued to the Corporate Debtor.

## Facts

The Financial Creditor initiated a Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, ETCO Industries Pvt. Ltd., by filing an application under Section 7 of the Insolvency and Bankruptcy Code. The Financial Creditor subsequently sought to withdraw the application based on a settlement reached with the Corporate Debtor. The Adjudicating Authority considered the withdrawal application, noting that the petition had not yet been admitted. The Corporate Debtor was notified of the application. The key fact is the settlement between the parties leading to the withdrawal request.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can permit the withdrawal of an application filed under Section …

**Ratio:** Rule 8 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules,

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**Reasoning:** The Adjudicating Authority reasoned that Rule 8 explicitly allows for the withdrawal of

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**Interpretation:** Rule 8 provides a procedural mechanism for withdrawing applications under

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**Application:** The Adjudicating Authority applied Rule 8 to the facts of the case, noting that

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## Parties

- **Judges:** BIKKI RAVEENDRA…
- **Appellants:** Nirag P…
- **Respondents:** ETCO Industries…; Arjun R.…

## Timeline

- **2017-04-06 — Order Da…**: The Adjudicating Authority passed an order permitting the withdrawal of the CP (IB) no.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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