# In the matter of Solas Fire Safety Equipment Private Limited C.P. (IB) No. 184-BB-2020

> NCLT judgment dated 2021-04-27. Citation: TCN-2021-NCLT-02290. M/s. Aster Technologies Pvt. Ltd. filed C.P.(IB) No.184/BB/2020 under Section 9 of the IBC,…

- **Court:** NCLT
- **Order date:** 27 Apr 2021
- **Citation:** TCN-2021-NCLT-02290
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/solas-fire-safety-equipment-private-limited-cp-ib-no-184-bb-2020-1d5fc3aa

## Summary

### Background

M/s. Aster Technologies Pvt. Ltd. filed C.P.(IB) No.184/BB/2020 under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Solas Fire Safety Equipment Private Limited, alleging a default of Rs.4,35,487.50. The Adjudicating Authority admitted the case on 15.03.2021.

## Facts

M/s. Aster Technologies Pvt. Ltd., an operational creditor, initiated Corporate Insolvency Resolution Process (CIRP) against M/s. Solas Fire Safety Equipment Private Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016, due to a default of Rs.4,35,487.50. The case was admitted on 15.03.2021. Subsequently, the parties reached a settlement, with the corporate debtor paying Rs.6,00,428.50 to the operational creditor on 06.04.2021. The operational creditor then sought to withdraw the CIRP application based on this settlement.

## Issues and analysis

### Issue 1: Whether the Tribunal should permit the Petitioner to withdraw the instant Company Petition given …

**Ratio:** The principle is that if parties to an insolvency proceeding reach a settlement before

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**Reasoning:** The Tribunal reasoned that since the parties had settled the issue by executing a joint

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**Interpretation:** This interpretation suggests that the NCLT prioritizes settlements reached

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**Application:** In this specific case, the parties settled the matter after the admission of

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. Aster…
- **Respondents:** M/s.Solas Fire…

## Timeline

- **2020-01-01 — Filing of C.P.(IB)…**: M/s. Aster Technologies Pvt. Ltd. filed C.P.(IB) No.184/BB/2020 under Section 9 of the…
- **2021-03-15 — Admission of…**: The Adjudicating…

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