# In the matter of KSL and Industries Ltd. C.P. (IB) No. 158-7-NCLT-AHM-2018

> NCLT judgment dated 2019-06-07. Citation: TCN-2019-NCLT-03010. The case pertains to an insolvency petition filed under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 7 Jun 2019
- **Citation:** TCN-2019-NCLT-03010
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ksl-and-industries-ltd-cp-ib-no-158-7-nclt-ahm-2018-083f10ba

## Summary

### Background

The case pertains to an insolvency petition filed under Section 7 of the Insolvency and Bankruptcy Code. The matter was listed before the Ahmedabad Bench of the National Company Law Tribunal (NCLT).

## Facts

Heavy Steel Pvt. Ltd. & Ors. filed an insolvency petition against KSL and Industries Ltd. under Section 7 of the Insolvency and Bankruptcy Code. The matter came before the Ahmedabad Bench of the National Company Law Tribunal (NCLT). During the proceedings, Advocate Natasha Shah, representing the applicant, filed a withdrawal pursis, stating that the matter had been settled out of court. The court considered this submission and allowed the withdrawal of the insolvency petition, subject to a cost of Rs. 10,000 to be paid to the Army Welfare Fund. The key fact is the out-of-court settlement which led to the withdrawal request and its subsequent approval by the NCLT.

## Issues and analysis

### Issue 1: Whether the insolvency petition filed by Heavy Steel Pvt. Ltd. & Ors. against KSL and …

**Ratio:** The principle is that courts generally allow the withdrawal of petitions when parties

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**Reasoning:** The court reasoned that since the parties had settled the matter out of court, allowing

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**Interpretation:** This issue involves the interpretation of the Insolvency and Bankruptcy Code

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**Application:** In this specific case, the court applied the principle by accepting the

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## Parties

- **Judges:** Manorama…; Harihar Prakash…
- **Appellants:** Rohitkuhu…
- **Respondents:** KSL and Industries…; HARMISH k…
- **Advocates:** Rohitkuma…; Natasha Dhruman…; +1 more

## Timeline

- **2019-06-07 — Order Da…**: The NCLT allowed the withdrawal of the IB Petition with a cost of Rs. 10,000 to be paid…

## 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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