# 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-02289. 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-02289
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/solas-fire-safety-equipment-private-limited-cp-ib-no-184-bb-2020-300800b2

## 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 2021-03-15. During the proceedings, the parties settled the issue by executing a Joint Compromise Memo dated 2021-04-06.

## Facts

M/s. Aster Technologies Pvt. Ltd. (Operational Creditor) filed C.P.(IB) No.184/BB/2020 under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Solas Fire Safety Equipment Private Limited (Corporate Debtor) for a default amount of Rs.4,35,487.50. The case was admitted on 2021-03-15. Subsequently, the parties entered into a Joint Compromise Memo dated 2021-04-06, where the Corporate Debtor paid Rs.6,00,428.50 to the Operational Creditor via Demand Draft No.163914 dated 2021-04-06. The Operational Creditor then sought to withdraw the petition, and the Tribunal permitted the withdrawal.

## Issues and analysis

### Issue 1: Whether the Tribunal should permit the withdrawal of the instant Company Petition in light of the …

**Ratio:** The legal principle applied is that if parties settle a dispute before further

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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 acknowledges the Tribunal's discretion to allow withdrawal

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

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## Parties

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

## Timeline

- **2020-01-01 — Case Fil…**: C.P.(IB) No.184/BB/2020 filed by…
- **2021-03-15 — Admission of…**: CP(IB)No.184/BB/2020…

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