# In the matter of Raj Rayon Industries Ltd. IA 362-2018 in-with C.P. (I.B) No. 26-9-NCLT-AHM-2019

> NCLT judgment dated 2019-06-28. Citation: TCN-2019-NCLT-02754. The case involves an application for withdrawal of a main petition filed under Section 9 of the…

- **Court:** NCLT
- **Order date:** 28 Jun 2019
- **Citation:** TCN-2019-NCLT-02754
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/raj-rayon-industries-ltd-ia-362-2018-in-with-cp-ib-no-26-9-nclt-ahm-2019-a40250e4

## Summary

### Background

The case involves an application for withdrawal of a main petition filed under Section 9 of the Insolvency and Bankruptcy Code. The application was filed jointly by the Petitioner and Respondent, seeking to recall an order dated 2019-05-29. The Corporate Debtor approached the Operational Creditor and agreed to pay the entire outstanding amount with interest, entering into consent terms on 2019-06-19.

## Facts

The Petitioner and Respondent jointly filed an application to recall the order dated 2019-05-29 passed by the NCLT in CP(IB) 26/2019, which was filed under Section 9 of the IB Code. This request was made in light of a settlement reached between the parties. The court's record showed that the application had been admitted on 2019-05-29, and an IRP was appointed with directions for a public announcement under Section 15 of the Code. Subsequently, the Corporate Debtor agreed to pay the Operational Creditor the outstanding amount with interest, formalizing this agreement in consent terms on 2019-06-19. The IRP stated that approximately Rs. 8 lacs had been spent, but did not provide supporting documentation. The court considered the settlement and the IRP's submission,

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the main petition filed under Section 9 of the Insolvency …

**Ratio:** The NCLT has the authority to allow or disallow an application for withdrawal or

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**Reasoning:** The court relied on the Supreme Court's judgment in Swiss Ribbons vs. Union of India,

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**Interpretation:** The interpretation is that the NCLT retains discretionary power to permit

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**Application:** In this case, the parties had reached a settlement, and the IRP had no

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## Parties

- **Judges:** Manorama…
- **Appellants:** Khanna & Khanna…
- **Respondents:** Raj Rayon…

## Timeline

- **2019-05-29 — Order Da…**: The application was admitted,…
- **2019-06-19 — Consent…**: The Corporate Debtor and Operational…

## 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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