# In the matter of Straight Edge Contracts Pvt. Ltd. (IB)-841(ND)2019

> NCLT judgment dated 2019-07-03. Citation: TCN-2019-NCLT-02698. The case involves a dispute between M/s India Agency (Applicant) and M/s Staight Edge Contracts…

- **Court:** NCLT
- **Order date:** 3 Jul 2019
- **Citation:** TCN-2019-NCLT-02698
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/straight-edge-contracts-pvt-ltd-ib-841nd2019-fff8118a

## Summary

### Background

The case involves a dispute between M/s India Agency (Applicant) and M/s Staight Edge Contracts Pvt Ltd (Respondent). A memorandum of understanding (MOU) was executed between the Operational Creditor and Corporate Debtor on 01.07.2019, along with six post-dated cheques for Rs. 34,58,741/-. The originals of the cheques were handed over to the learned counsel for the applicant.

## Facts

M/s India Agency filed an application against M/s Staight Edge Contracts Pvt Ltd. A memorandum of understanding (MOU) was executed between the parties on 2019-07-01, supported by six post-dated cheques totaling Rs. 34,58,741. The applicant sought to withdraw the application, retaining the option to revive it if the respondent defaults on the MOU. The relevance of the MOU and cheques is that they represent an agreement to settle the dispute, leading to the applicant's request for withdrawal.

## Issues and analysis

### Issue 1: Whether the applicant should be allowed to withdraw the application with the liberty to revive it …

**Ratio:** An applicant can withdraw an application with the court's permission, especially when a

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**Reasoning:** The court considered the MOU placed on record by both parties and the applicant's request

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**Interpretation:** This case interprets the applicant's right to withdraw an application under the

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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:** DEEPTI M…; Pradeep R.…
- **Appellants:** M/s India…
- **Respondents:** M/s Staight Edge…

## Timeline

- **2019-07-01 — MOU Exec…**: Memorandum of understanding executed between the Operational Creditor and Corporate…
- **2019-07-03 — Order Del…**: Order delivered allowing…

## 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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