# In the matter of Shital Fibers Limited & Ors CA Nos. 231 & 562-2019 in CP (IB) No. 368-Chd-Pb-2018

> NCLT judgment dated 2019-08-06. Citation: TCN-2019-NCLT-02070. The case involves CA Nos.231/2019 & 562/2019 and CP (IB) No.368/Chd/Pb/2018 under Section 9 of…

- **Court:** NCLT
- **Order date:** 6 Aug 2019
- **Citation:** TCN-2019-NCLT-02070
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shital-fibers-limited-ors-ca-nos-231-562-2019-in-cp-ib-no-368-chd-pb-2018-0a4658aa

## Summary

### Background

The case involves CA Nos.231/2019 & 562/2019 and CP (IB) No.368/Chd/Pb/2018 under Section 9 of the Insolvency and Bankruptcy Code, 2016. CA No. 562/2019 was filed by the operational creditor to withdraw the captioned matter pursuant to a settlement deed. CA No. 231/2019 was filed by the respondent-corporate debtor to place on record a certificate stating that the yarn supplied suffered from low quality. CP (IB) No.368/Chd/Pb/2018 was the original insolvency petition.

## Facts

M/s APM Industries Limited (Unit Orient Syntex) filed an insolvency petition CP (IB) No.368/Chd/Pb/2018 against Shital Fibers Limited & Ors. under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor, APM Industries, sought to withdraw the petition CA No. 562/2019 based on a settlement deed dated 2019-07-22. Shital Fibers Limited, the corporate debtor, filed CA No. 231/2019 to place on record a certificate dated 2019-03-22 from a Chartered Engineer indicating that the yarn supplied suffered from low quality. Members of the Bar were abstaining from work.

## Issues and analysis

### Issue 1: Whether the operational creditor should be allowed to withdraw the insolvency petition based on the …

**Ratio:** Rule 11 of the NCLT Rules allows for

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**Reasoning:** The court considered the averments made in the application by the operational creditor

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**Interpretation:** The court interpreted Rule 11 of the NCLT Rules to allow for the withdrawal of

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**Application:** The court applied Rule 11 to the facts of the case, allowing the operational

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** M/s APM Industries…
- **Respondents:** Shital Fibers…

## Timeline

- **2018-01-01 — CP (IB) No.368/Chd/Pb/20…**: Insolvency petition filed by M/s APM…
- **2019-03-22 — Certificat…**: Date of the certificate issued by the Chartered Engineer regarding the quality of yarn…

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