# In the matter of Shiva Texfabs Ltd. CP (IB) No. 370-Chd-Pb-2018

> NCLT judgment dated 2019-03-07. Citation: TCN-2019-NCLT-04547. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 7 Mar 2019
- **Citation:** TCN-2019-NCLT-04547
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shiva-texfabs-ltd-cp-ib-no-370-chd-pb-2018-ecc87f25

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by M/s Jatinder Singh & Associates, Chartered Accountants, against Shiva Texfabs Ltd. The petitioner sought initiation of the corporate insolvency resolution process against the respondent.

## Facts

M/s Jatinder Singh & Associates, Chartered Accountants, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Shiva Texfabs Ltd., seeking to initiate the corporate insolvency resolution process. The petitioner and respondent subsequently reached a settlement. The petitioner's counsel presented the settlement document and copies of cheques issued by the respondent-corporate debtor to the court. Based on this settlement, the petitioner sought to withdraw the petition.

## Issues and analysis

### Issue 1: Whether the petitioner should be allowed to withdraw the petition based on the settlement reached …

**Ratio:** A petitioner is generally allowed to withdraw a petition if a settlement has been reached

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**Reasoning:** The court acknowledged the settlement document and the copies of cheques issued by the

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**Interpretation:** The principle of allowing withdrawal of petitions upon settlement is based on

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**Application:** In this case, the petitioner's counsel presented evidence of a settlement, and

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## Parties

- **Judges:** R.P.Nag…
- **Appellants:** M/s Jatinder…
- **Respondents:** Shiva Texfa…

## Timeline

- **2018-01-01 — CP (IB) No.370/Chd/Pb/20…**: Corporate Insolvency Resolution Process…
- **2019-02-07 — Order Del…**: Order delivered dismissing the petition as…

## 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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