# In the matter of Sew Infrastructure Ltd. CP(IB) No. 718-9-HDB-2018

> NCLT judgment dated 2019-06-11. Citation: TCN-2019-NCLT-02974. 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-02974
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sew-infrastructure-ltd-cpib-no-718-9-hdb-2018-981ce34a

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC) by Dadu Suppliers, an operational creditor, against SEW Infrastructure Ltd, the corporate debtor. The petition was filed due to an alleged default in payment. During the proceedings, both parties filed a joint memo of withdrawal along with a settlement agreement, indicating that they had amicably settled the claim.

## Facts

Dadu Suppliers, the operational creditor, filed a petition under Section 9 of the IBC against SEW Infrastructure Ltd, the corporate debtor, due to alleged payment defaults. The parties subsequently entered into a settlement agreement dated April 25, 2019. A joint memo of withdrawal was filed by both parties on June 11, 2019, seeking permission to withdraw the petition based on the settlement. The petition had not yet been admitted by the court. The settlement agreement is a key fact as it forms the basis for the withdrawal of the petition.

## Issues and analysis

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

**Ratio:** Rule 8 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules,

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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:** The interpretation of Rule 8 allows the Adjudicating Authority to permit

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**Application:** The court applied Rule 8 to the specific facts, noting the settlement agreement

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## Parties

- **Judges:** Ratakonda…
- **Appellants:** Dadu Supp…
- **Respondents:** Sew Infrastructure…

## Timeline

- **2018-12-12 — Hearing…**: Hearing held on this…
- **2019-01-07 — 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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