# In the matter of Photon Energy System Limited I.A. No. 160-2019 in CP (IB) No. 231-9-HDB-2018

> NCLT judgment dated 2019-03-07. Citation: TCN-2019-NCLT-04559. The case involves an application filed by the Corporate Debtor seeking to set aside the…

- **Court:** NCLT
- **Order date:** 7 Mar 2019
- **Citation:** TCN-2019-NCLT-04559
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/photon-energy-system-limited-ia-no-160-2019-in-cp-ib-no-231-9-hdb-2018-e53721e1

## Summary

### Background

The case involves an application filed by the Corporate Debtor seeking to set aside the Tribunal's order dated 21.02.2019, which admitted a petition filed by the Operational Creditor under Section 9 of the IBC, 2016, initiating CIRP, granting moratorium, and appointing an IRP. The parties have agreed to settle all disputes following a memorandum of understanding and joint settlement deed. The total due amount to be settled is Rs. 87,80,569/-.

## Facts

Artha Energy Resources LLP, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 against Photon Energy Systems Limited, the Corporate Debtor. The National Company Law Tribunal (NCLT) admitted the petition on 21.02.2019, initiating the Corporate Insolvency Resolution Process (CIRP), imposing a moratorium, and appointing an Interim Resolution Professional (IRP). Subsequently, the Corporate Debtor filed an application seeking to set aside the admission order. The parties reached a settlement, agreeing on a total due amount of Rs. 87,80,569/-. The Corporate Debtor issued a Demand Draft of Rs 46,00,000/- and provided post-dated cheques for the remaining Rs. 41,80,569/-. The Committee of Creditors (CoC) had not yet been

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## Issues and analysis

### Issue 1: Whether the Tribunal can allow the withdrawal of a petition under Section 9 of the IBC after its …

**Ratio:** The ratio is based on the principle that the Tribunal has inherent powers under Rule 11

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**Reasoning:** The Tribunal reasoned that since the CoC was not yet constituted, the parties could

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**Interpretation:** This interprets Rule 11 of the NCLT Rules, 2016, as granting the Tribunal

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** Ratakonda…; Ratakonda…
- **Respondents:** Photon Energy…; Photon Energy…

## Timeline

- **2019-02-21 — Admission of…**: Tribunal admitted the petition filed under Section 9 of IBC, 2016 by Operational…
- **2019-02-26 — Compromise I…**: Counsel for Operation Creditor and PCS for Corporate Debtor informed the Tribunal that…

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