# In the matter of K.T.C. Foods Pvt. Ltd. CP (IB) No. 125-Chd-Hry-2017

> NCLT judgment dated 2017-12-01. Citation: TCN-2017-NCLT-00109. The case pertains to CP (IB) No.125/Chd/Hry/2017 filed under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 1 Dec 2017
- **Citation:** TCN-2017-NCLT-00109
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ktc-foods-pvt-ltd-cp-ib-no-125-chd-hry-2017-9553360e

## Summary

### Background

The case pertains to CP (IB) No.125/Chd/Hry/2017 filed under Section 9 of the Insolvency and Bankruptcy Code, 2016. M/s Shree Trading Company, the operational creditor/petitioner, initiated proceedings against K T C Foods Pvt. Ltd., the corporate debtor/respondent.

## Facts

M/s Shree Trading Company, an operational creditor, filed an insolvency petition against K T C Foods Pvt. Ltd., the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petitioner sought to withdraw the petition due to a technical defect in the Demand Notice. The court permitted the withdrawal with liberty to file a fresh petition on the same cause of action. The order was delivered on 01.12.2017.

## Issues and analysis

### Issue 1: Whether the petitioner should be allowed to withdraw the insolvency petition due to a technical …

**Ratio:** A petitioner is generally allowed to withdraw a petition if there is a valid reason, such

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**Reasoning:** The court reasoned that the technical defect in the Demand Notice constituted a valid

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**Interpretation:** This interpretation allows for flexibility in insolvency proceedings,

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**Application:** In this case, the court applied the ratio by permitting the petitioner to

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## Parties

- **Judges:** R.P.Nag…
- **Appellants:** M/s Shree Trading…
- **Respondents:** K T C Foods Pvt.…
- **Advocates:** D.B. S…

## Timeline

- **2017-12-01 — Order Del…**: The court delivered an order allowing the petitioner to withdraw the insolvency petition…

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