# In the matter of Rana Polycot Limited CP (IB) No.136-Chd-Chd-2019

> NCLT judgment dated 2020-02-10. Citation: TCN-2020-NCLT-02032. The case involves a petition filed by State Bank of India, the Financial Creditor, against Rana…

- **Court:** NCLT
- **Order date:** 10 Feb 2020
- **Citation:** TCN-2020-NCLT-02032
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rana-polycot-limited-cp-ib-no136-chd-chd-2019-db6c26ac

## Summary

### Background

The case involves a petition filed by State Bank of India, the Financial Creditor, against Rana Polycot Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petitioner sought to initiate corporate insolvency resolution process against the corporate debtor.

## Facts

State Bank of India, the Financial Creditor, filed a Corporate Insolvency Petition (CP) against Rana Polycot Limited, the Corporate Debtor. During the hearing, the petitioner's counsel submitted that the One Time Settlement (OTS) proposal given by the Corporate Debtor had been accepted. Consequently, the petitioner sought to withdraw the CP with the liberty to revive it if the Corporate Debtor fails to comply with the terms of the OTS. This indicates that the parties had reached an agreement outside of the insolvency proceedings, contingent upon the Corporate Debtor's adherence to the settlement terms. The acceptance of the OTS proposal is a key fact that led to the dismissal of the CP.

## Issues and analysis

### Issue 1: Whether the Tribunal should grant leave to the petitioner to withdraw the Corporate Insolvency …

**Ratio:** The legal principle applied here is the Tribunal's discretion to allow the withdrawal of

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**Reasoning:** The court's reasoning is based on the submission by the petitioner's counsel that the OTS

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**Interpretation:** This involves interpreting the Tribunal's powers under the Insolvency and

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

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** State Bank of…
- **Respondents:** Rana Polycot…

## Timeline

- **2020-02-10 — Order Da…**: The Tribunal dismissed the instant CP as withdrawn with liberty to revive if the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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