# In the matter of Stallion Tyres Ltd. C.P (IB) No. 79-09-HDB-2019

> NCLT judgment dated 2019-03-06. Citation: TCN-2019-NCLT-04572. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 6 Mar 2019
- **Citation:** TCN-2019-NCLT-04572
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/stallion-tyres-ltd-cp-ib-no-79-09-hdb-2019-a91e9422

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, filed by Ram Charan Company Pvt Ltd, an operational creditor, against Stallion Tyres Ltd, the corporate debtor. The operational creditor sought initiation of the corporate insolvency resolution process against the corporate debtor. The petition was filed before the National Company Law Tribunal (NCLT), Hyderabad Bench.

## Facts

Ram Charan Company Pvt Ltd, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Stallion Tyres Ltd, the corporate debtor, before the NCLT Hyderabad. The operational creditor claimed that the corporate debtor had defaulted on payments. During the proceedings, the operational creditor and the corporate debtor reached a settlement. The corporate debtor made the payment to the operational creditor. Consequently, the operational creditor filed a withdrawal memo, stating that they had received the payment. The petition was not yet admitted by the NCLT when the withdrawal request was made. The NCLT considered the withdrawal request and the fact that the claim had been settled.

## Issues and analysis

### Issue 1: Whether the operational creditor can be granted permission to withdraw the petition under Rule 8 of …

**Ratio:** Rule 8 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules,

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**Reasoning:** The court reasoned that since the petition was not yet admitted, the operational creditor

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**Interpretation:** Rule 8 provides a mechanism for withdrawing an application before it is

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**Application:** In this case, the operational creditor sought to withdraw the petition before

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## Parties

- **Judges:** Ratakonda…; Ratakonda…
- **Appellants:** Ram Charan…
- **Respondents:** Stalion Typ…

## Timeline

- **2019-02-07 — Hearing…**: Hearing held on…
- **2019-03-06 — Hearing Date and Order…**: Hearing held and order passed on 06.03.2019. Permission granted to withdraw the petition.…

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