# In the matter of Sembmarine Kakinada Limited C.P (IB) No. 580-9-HDB-2018

> NCLT judgment dated 2019-06-11. Citation: TCN-2019-NCLT-02976. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 11 Jun 2019
- **Citation:** TCN-2019-NCLT-02976
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sembmarine-kakinada-limited-cp-ib-no-580-9-hdb-2018-a925c943

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 by Madras Steels & Tubes (Operational Creditor) against Sembmarine Kakinada Limited (Corporate Debtor). The petition was filed due to an alleged default in payment. The parties subsequently entered into a settlement agreement.

## Facts

Madras Steels & Tubes, the Operational Creditor, initiated proceedings against Sembmarine Kakinada Limited, the Corporate Debtor, under Section 9 of the IBC, 2016. The basis for the petition was an alleged default in payment. During the proceedings, both parties reached a settlement agreement, dated 2019-04-13, leading to a joint memo being filed before the NCLT, Hyderabad Bench, seeking permission to withdraw the petition. The petition had not yet been admitted at the time of the withdrawal request. The court considered the settlement and the joint request for withdrawal.

## Issues and analysis

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

**Ratio:** The legal principle applied is that a petition can be withdrawn if the parties have

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**Reasoning:** The court reasoned that since the parties had amicably settled the claim and filed a

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**Interpretation:** This interprets Rule 8 of the Insolvency and Bankruptcy (Application to

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

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## Parties

- **Judges:** Ratakonda…
- **Appellants:** Madras Steels &…
- **Respondents:** Sembmarine…; Sembmarine…

## Timeline

- **2018-10-12 — Hearing…**: Hearing held on this…
- **2018-10-30 — Hearing…**: Hearing held on this…

## 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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