# In the matter of Leeboy India Construction Equipment Private Limited C.P. (IB)No. 162-BB-2019

> NCLT judgment dated 2019-07-31. Citation: TCN-2019-NCLT-02175. M/s. JotWire India Private Limited filed C.P.(IB)No.162/BB/2019 under Section 9 of the IBC,…

- **Court:** NCLT
- **Order date:** 31 Jul 2019
- **Citation:** TCN-2019-NCLT-02175
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/leeboy-india-construction-equipment-private-limited-cp-ibno-162-bb-2019-a7531203

## Summary

### Background

M/s. JotWire India Private Limited filed C.P.(IB)No.162/BB/2019 under Section 9 of the IBC, 2016, seeking to initiate CIRP against M/s. Leeboy India Construction Equipment Private Limited, alleging a default of Rs.22,09,621.16. The case was listed for admission on multiple dates but remained pending due to various reasons at the request of the parties.

## Facts

M/s. JotWire India Private Limited, the operational creditor, filed a petition under Section 9 of the IBC, 2016, against M/s. Leeboy India Construction Equipment Private Limited, the corporate debtor, claiming a default of Rs.22,09,621.16. The matter was listed on several dates but remained pending. Subsequently, the parties reached a settlement for Rs.19,89,000, and the corporate debtor issued four cheques to the operational creditor. The operational creditor encashed one cheque for Rs.5,00,000 and the remaining three cheques were post-dated. The operational creditor then sought to withdraw the petition with the liberty to file a fresh petition if the remaining cheques were dishonored. The settlement memo was submitted to the court on 2019-07-31.

## Issues and analysis

### Issue 1: Whether the Petitioner should be allowed to withdraw the instant Company Petition based on the …

**Ratio:** A party is generally allowed to withdraw a petition if a settlement has been reached,

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**Reasoning:** The court considered the settlement memo filed by the petitioner, indicating that the

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**Interpretation:** This reflects the principle that courts generally encourage and respect

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**Application:** Since the parties had settled and the case was not yet admitted, the court

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s. JotWire…
- **Respondents:** M/s. Leeboy India…

## Timeline

- **2019-07-31 — Date of…**: Final order…
- **2019-05-08 — Listing…**: Case listed for…

## 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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