# In the matter of Stallion Tyres Ltd. C.P.(IB) No. 79-9-HDB-2019

> NCLT judgment dated 2019-03-06. Citation: TCN-2019-NCLT-04562. 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-04562
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/stallion-tyres-ltd-cpib-no-79-9-hdb-2019-97978dc2

## 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 (CIRP) 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 Bench. The operational creditor claimed that the corporate debtor had defaulted on payments. During the proceedings, the operational creditor filed a memo stating that they had received payment from the corporate debtor and that the claim had been settled. The CEO of the corporate debtor company was present during the hearing. The petition had not yet been admitted by the NCLT. The operational creditor sought to withdraw the petition based on the settlement.

## Issues and analysis

### Issue 1: Whether the operational creditor can be granted permission to withdraw the petition under Section 9 …

**Ratio:** The legal principle applied is that an operational creditor can withdraw a petition under

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**Reasoning:** The court reasoned that since the operational creditor had received payment from the

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**Interpretation:** The interpretation of Section 9 of the IBC, 2016, in conjunction with Rule 8 of

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**Application:** In this specific case, the ratio and reasoning were applied to the facts

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## Parties

- **Judges:** Ratakonda…
- **Appellants:** Ram Charan…
- **Respondents:** Stallion Ty…

## Timeline

- **2019-02-07 — Hearing…**: One of the hearing…
- **2019-03-06 — Hearing Date and Order…**: The final hearing was held, and the…

## 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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