# In the matter of Saptagiri Laboratories Private Limited CP (IB) No. 107-7-HDB-2020

> NCLT judgment dated 2020-03-16. Citation: TCN-2020-NCLT-01510. The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 16 Mar 2020
- **Citation:** TCN-2020-NCLT-01510
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/saptagiri-laboratories-private-limited-cp-ib-no-107-7-hdb-2020-c0244d1f

## Summary

### Background

The case involves a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by Dabbara Narendra Babu, a financial creditor, against Saptagiri Laboratories Private Limited. The petition was filed before the National Company Law Tribunal (NCLT), Hyderabad Bench. The financial creditor sought to initiate the corporate insolvency resolution process against the corporate debtor. However, the parties subsequently entered into a settlement.

## Facts

Dabbara Narendra Babu, a software engineer residing in both Hyderabad and the USA, filed a petition as a financial creditor against Saptagiri Laboratories Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The petition was filed before the NCLT, Hyderabad Bench. The parties subsequently reached a settlement, leading the financial creditor to file a withdrawal memo. The NCLT noted that the petition had not yet been admitted. The financial creditor sought to withdraw the petition under Rule 8 of the I&B (AAA) Rules, 2016. The key fact is the settlement between the parties, which prompted the withdrawal request and the subsequent dismissal of the petition.

## Issues and analysis

### Issue 1: Whether the financial creditor can be granted permission to withdraw the petition filed under …

**Ratio:** The legal principle is that a petition under Section 7 of the IBC can be withdrawn before

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**Reasoning:** The court reasoned that since the petition had not yet been admitted, and the financial

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**Interpretation:** The interpretation of Section 7 of the IBC and Rule 8 of the I&B (AAA)

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**Application:** In this specific case, the ratio and reasoning were applied to the facts that

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## Parties

- **Judges:** Ratakonda…; Narender Kumar…
- **Appellants:** Dabbara Narendra…
- **Respondents:** Saptagiri…
- **Advocates:** Venkata Ram…

## Timeline

- **2020-02-18 — Hearing…**: Hearing on the…
- **2020-03-16 — Hearing…**: Hearing on 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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