# In the matter of Shingar Ltd. CP(IB)/488(AHM)/2019

> NCLT judgment dated 2021-06-15. Citation: TCN-2021-NCLT-01967. The case pertains to CP(IB)/488(AHM)2019 before the Ahmedabad Bench of the National Company Law…

- **Court:** NCLT
- **Order date:** 15 Jun 2021
- **Citation:** TCN-2021-NCLT-01967
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shingar-ltd-cpib488ahm2019-0d013cb4

## Summary

### Background

The case pertains to CP(IB)/488(AHM)2019 before the Ahmedabad Bench of the National Company Law Tribunal. The matter involves Ami Trading Company versus Shingar Ltd. The Operational Creditor sought to withdraw the IB petition after a settlement was reached between the parties.

## Facts

The case involves Ami Trading Company as the Operational Creditor and Shingar Ltd as the Corporate Debtor. The Operational Creditor filed an IB petition under Section 9 of the Insolvency and Bankruptcy Code. During the proceedings, both parties reached a settlement, and the terms of the settlement were filed with the court. Consequently, the Operational Creditor sought permission to withdraw the IB petition. The court granted this permission, allowing the withdrawal of the petition but with a liberty to revive it if the settlement fails. This indicates that the settlement is a crucial fact influencing the court's decision to allow the withdrawal.

## Issues and analysis

### Issue 1: Whether the Operational Creditor should be granted permission to withdraw the IB petition given the …

**Ratio:** The legal principle is that a court may allow the withdrawal of a petition when the

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**Reasoning:** The court reasoned that since both parties had submitted that the matter was settled and

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**Interpretation:** This issue involves the interpretation of the court's power to allow withdrawal

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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:** Madan B.…; Chockalingam…
- **Appellants:** Ami Trading…
- **Respondents:** Shingar…

## Timeline

- **2021-06-15 — Order Da…**: Order issued by the National Company Law Tribunal, Ahmedabad Bench, disposing of CP(IB)…

## 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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