# In the matter of Surya Jyoti Spinning Mills Ltd. CP(IB) No.363-9-HDB-2018

> NCLT judgment dated 2019-04-04. Citation: TCN-2019-NCLT-04144. The case involves a petition filed by Kerry Indev Logistics Pvt Ltd, an operational creditor,…

- **Court:** NCLT
- **Order date:** 4 Apr 2019
- **Citation:** TCN-2019-NCLT-04144
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/surya-jyoti-spinning-mills-ltd-cpib-no363-9-hdb-2018-e53a336b

## Summary

### Background

The case involves a petition filed by Kerry Indev Logistics Pvt Ltd, an operational creditor, against Surya Jyoti Spinning Mills Ltd, the corporate debtor, under Section 9 of the IBC, 2016. The operational creditor sought to initiate corporate insolvency resolution process against the corporate debtor. The operational creditor filed a withdrawal memo along with a Memorandum of Understanding (MOU), indicating that the parties had reached a settlement/compromise regarding the claim.

## Facts

Kerry Indev Logistics Pvt Ltd, the operational creditor, filed a petition against Surya Jyoti Spinning Mills Ltd, the corporate debtor, under Section 9 of the IBC, 2016. The operational creditor and corporate debtor reached a settlement and entered into a Memorandum of Understanding (MOU). The operational creditor then filed a withdrawal memo seeking to withdraw the petition based on the settlement. The petition had not yet been admitted by the NCLT. The settlement and MOU are key facts as they form the basis for the withdrawal of the petition. The fact that the petition was not yet admitted is also relevant as it simplifies the withdrawal process.

## 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 I&B (AAA) Rules, 2016, allows for the withdrawal of a petition

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**Reasoning:** The court reasoned that since the operational creditor and the corporate debtor had

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**Interpretation:** Rule 8 of the I&B (AAA) Rules, 2016, is interpreted to facilitate

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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:** Ratakonda…
- **Respondents:** Surya Jyoti…
- **Advocates:** P.Sub…; Asif S…; +2 more

## Timeline

- **2018-01-01 — Company Petiti…**: CP(IB) No.363/9/HDB/2018…
- **2019-02-11 — Settlement Ag…**: Parties entered into a…

## 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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