# In the matter of Techno Sales Corporation Private Limited C.P. (IB) No. 419-BB-2019

> NCLT judgment dated 2020-02-11. Citation: TCN-2020-NCLT-02002. M/s. Arihant Aluminium Corporation filed C.P.(IB) No.419/BB/2019 under Section 9 of the IBC,…

- **Court:** NCLT
- **Order date:** 11 Feb 2020
- **Citation:** TCN-2020-NCLT-02002
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/techno-sales-corporation-private-limited-cp-ib-no-419-bb-2019-c6ddc291

## Summary

### Background

M/s. Arihant Aluminium Corporation filed C.P.(IB) No.419/BB/2019 under Section 9 of the IBC, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Techno Sales Corporation Private Limited, alleging a default of Rs.4,08,849/-. The case was listed for admissions on multiple dates, but was adjourned each time at the petitioner's request for reasons such as serving notice and exploring settlement.

## Facts

M/s. Arihant Aluminium Corporation, the operational creditor, filed C.P.(IB) No.419/BB/2019 under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, against M/s. Techno Sales Corporation Private Limited, the corporate debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The basis for the petition was a default of Rs.4,08,849/-. The case was listed for admission on several dates, but adjourned at the petitioner's request. Eventually, the parties settled the matter outside court, and the petitioner sought to withdraw the petition. The relevance of these facts lies in demonstrating the initiation of insolvency proceedings, the subsequent settlement, and the eventual withdrawal of the petition before admission.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should permit the Petitioner to withdraw the instant Company …

**Ratio:** An operational creditor can withdraw a petition filed under Section 9 of the IBC before

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**Reasoning:** The Adjudicating Authority noted that the Company Petition had not yet been admitted.

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**Interpretation:** This interpretation allows for flexibility in insolvency proceedings,

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**Application:** Since the Company Petition was not yet admitted and the parties had settled the

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s. Arihant…
- **Respondents:** M/s Techno Sales…
- **Advocates:** Vijay Na…; Pallavi B…

## Timeline

- **2019-12-03 — Case Listed for…**: The case was initially…
- **2019-12-09 — Case Listed for…**: The case was listed for…

## 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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