# In the matter of Simplex Projects Ltd. C.P. (IB)-19(KB)2019

> NCLT judgment dated 2021-12-06. Citation: TCN-2021-NCLT-00253. A petition was filed under Section 7 of the Insolvency and Bankruptcy Code (IBC) seeking…

- **Court:** NCLT
- **Order date:** 6 Dec 2021
- **Citation:** TCN-2021-NCLT-00253
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/simplex-projects-ltd-cp-ib-19kb2019-8ee39b58

## Summary

### Background

A petition was filed under Section 7 of the Insolvency and Bankruptcy Code (IBC) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, Simplex Projects Ltd, due to a default in payment of Rs. 10,36,47,148/- under a sub-contracting arrangement. The petitioner claimed to have executed a project under a sub-contract dated 2010-06-16. The Irrigation Department, Govt of UP, which entered into the main contracting arrangement with Simplex Projects Ltd, the corporate debtor, has been paid by the Govt in full. However, the petitioner has not been paid.

## Facts

A petition was filed under Section 7 of the IBC seeking CIRP against Simplex Projects Ltd, the corporate debtor, due to a default in payment of Rs. 10,36,47,148/- under a sub-contracting arrangement. The petitioner executed a project under a sub-contract dated 2010-06-16. The Irrigation Department, Govt of UP, which entered into the main contracting arrangement with Simplex Projects Ltd, has been paid in full by the Govt. Despite this, the petitioner has not been paid. The petition was considered to have the ingredients of a Section 9 petition. The petitioner's counsel sought to withdraw the petition with the liberty to file a fresh petition under Section 9 of the Code.

## Issues and analysis

### Issue 1: Whether the petition filed under Section 7 of the IBC should be dismissed as withdrawn, with …

**Ratio:** The court has the discretion to allow the withdrawal of a petition if it deems it

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**Reasoning:** The court considered the circumstances and the petitioner's request to withdraw the

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**Interpretation:** The court interpreted the petitioner's request as a recognition that the facts

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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:** Rajasekha…; Balraj…
- **Appellants:** VEDIC PROJECT PVT…
- **Respondents:** SIMPLEX PROJECT…

## Timeline

- **2010-06-16 — Sub-contrac…**: Date of the sub-contract under which…
- **2021-12-06 — Hearing…**: Hearing on the petition filed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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