# In the matter of Navayuga Engineering Company Limited CP (IB) No. 01-9-AMR-2021

> NCLT judgment dated 2021-06-18. Citation: TCN-2021-NCLT-01952. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 18 Jun 2021
- **Citation:** TCN-2021-NCLT-01952
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/navayuga-engineering-company-limited-cp-ib-no-01-9-amr-2021-5925976c

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by Kunal Conchem Private Limited (Operational Creditor) against Navayuga Engineering Company Limited (Corporate Debtor).

## Facts

Kunal Conchem Private Limited, the Operational Creditor, filed a petition under Section 9 of the IBC against Navayuga Engineering Company Limited, the Corporate Debtor. The petition was filed with the NCLT Amaravati Bench. The NCLT heard both parties and noted that a settlement memo had been filed. Based on this settlement, the NCLT dismissed the petition as withdrawn. The key fact is the settlement between the parties, which led to the dismissal of the CIRP application.

## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) application filed by the Operational …

**Ratio:** The legal principle applied is that a CIRP application can be dismissed if the parties

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**Reasoning:** The court reasoned that since both parties had filed a settlement memo, it was

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**Interpretation:** The interpretation is that the IBC allows for settlements between the parties

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**Application:** In this case, the court applied the principle by dismissing the CIRP

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## Parties

- **Judges:** Bhaskara Pantula…
- **Appellants:** Kunal Conchem Pvt…
- **Respondents:** Navayuga Engineeri…

## Timeline

- **2021-06-18 — Hearing…**: Hearing held on June…
- **2021-06-18 — Order Da…**: Order issued dismissing the CP…

## 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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