# In the matter of SCOD 18 Networking Pvt. Ltd. MA 1534-2018 in CP No.282-IB-NCLT-MB-MAH-2018

> NCLT judgment dated 2018-12-24. Citation: TCN-2018-NCLT-00017. A petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 was filed by SITI…

- **Court:** NCLT
- **Order date:** 24 Dec 2018
- **Citation:** TCN-2018-NCLT-00017
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/scod-18-networking-pvt-ltd-ma-1534-2018-in-cp-no282-ib-nclt-mb-mah-2018-9d03a6e0

## Summary

### Background

A petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 was filed by SITI Networks Ltd. against SCOD 18 Networking Pvt. Ltd. for a debt of ₹11,00,00,000. The petition was admitted on 2018-09-06, initiating insolvency proceedings and imposing a moratorium. Subsequently, SITI Networks Ltd. submitted Form FA, requesting withdrawal of the Section 7 petition based on a settlement with SCOD 18 Networking Pvt. Ltd.

## Facts

SITI Networks Ltd. initiated insolvency proceedings against SCOD 18 Networking Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, due to a debt of ₹11,00,00,000. The petition was admitted on 2018-09-06, leading to the commencement of insolvency proceedings and the imposition of a moratorium. A settlement was reached between SITI Networks Ltd. and SCOD 18 Networking Pvt. Ltd. on 2018-10-26, where the shareholders of SCOD 18 Networking Pvt. Ltd. agreed to pay ₹5,50,00,000 in three installments. The Committee of Creditors, consisting solely of SITI Networks Ltd., approved the settlement and the withdrawal of the petition. SITI Networks Ltd. submitted Form FA, requesting the withdrawal of the petition under Section 12A of the Code. The IRP, Snehal

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## Issues and analysis

### Issue 1: Whether the application for withdrawal of the petition under Section 12A of the Insolvency and …

**Ratio:** Section 12A of the Insolvency and Bankruptcy Code, 2016, allows for the withdrawal of an

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**Reasoning:** The court considered the settlement agreement between SITI Networks Ltd. and SCOD 18

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**Interpretation:** Section 12A provides a mechanism for parties to resolve their disputes outside

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**Application:** In this case, the settlement between SITI Networks Ltd. and SCOD 18 Networking

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Snehal K…
- **Respondents:** SCOD 18 Networking…; Kirtida Cha…

## Timeline

- **2018-09-06 — Admission of Section 7…**: The Section 7 petition filed by SITI Networks Ltd. against SCOD 18 Networking Pvt. Ltd.…
- **2018-10-26 — Deed of Set…**: A Deed of Settlement was executed between SITI Networks Ltd. and SCOD 18 Networking Pvt.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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