# In the matter of Pallavada Technical Textile Pvt. Ltd. IBA-159-2020

> NCLT judgment dated 2021-01-06. Citation: TCN-2021-NCLT-03384. The petitioner filed an application under Section 9, Rule 6 of the IBC. During the proceedings,…

- **Court:** NCLT
- **Order date:** 6 Jan 2021
- **Citation:** TCN-2021-NCLT-03384
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/pallavada-technical-textile-pvt-ltd-iba-159-2020-574c5f69

## Summary

### Background

The petitioner filed an application under Section 9, Rule 6 of the IBC. During the proceedings, a settlement agreement was reached between the petitioner and the corporate debtor, leading the petitioner to seek withdrawal of the petition.

## Facts

The case involves an application filed under Section 9 , Rule 6 of the Insolvency and Bankruptcy Code (IBC). The petitioner in this matter is IDBI Capital Mumbai And Services Pvt Ltd, and the respondent is Pallavada Technical Textile Pvt Ltd. The application number for this proceeding is IBA/159/2020, indicating its nature as an insolvency-related petition before the National Company Law Tribunal. During the course of the proceedings, specifically on January 5, 2021, a Settlement Agreement was executed between the petitioner and the corporate debtor. This agreement stipulated that the petitioner would withdraw the petition upon receiving the agreed-upon consideration. Consequently, the advocate representing the petitioner informed the Tribunal of this development and

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## Issues and analysis

### Issue 1: Whether the petition can be withdrawn following a settlement agreement between the petitioner and …

**Ratio:** A petition can be dismissed as withdrawn if a settlement agreement is reached between the

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**Reasoning:** The petitioner's advocate represented that a settlement agreement had been entered into,

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**Interpretation:** Rule 8 of the I&B (AAA) Rules, 2016, allows for the withdrawal of a

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**Application:** Given the settlement agreement dated January 5, 2021, and the petitioner's

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** IDBI Capital…; IDBI Capital…; +1 more
- **Respondents:** Pallavada…
- **Advocates:** Sella Visa…; For the Petitioner…

## Timeline

- **January 5, 2021 — Settlement Ag…**: A Settlement Agreement was entered into between…
- **January 6, 2021 — Hearing and…**: The National Company Law Tribunal, Chennai Bench, held a hearing where the petitioner's…

## 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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