# In the matter of Truefix Media Transformation Pvt. Ltd. MA-1087-2019 in IBA-473-2019

> NCLT judgment dated 2019-10-14. Citation: TCN-2019-NCLT-01014. The Operational Creditor filed an application for withdrawal of the main application…

- **Court:** NCLT
- **Order date:** 14 Oct 2019
- **Citation:** TCN-2019-NCLT-01014
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/truefix-media-transformation-pvt-ltd-ma-1087-2019-in-iba-473-2019-a826c65a

## Summary

### Background

The Operational Creditor filed an application for withdrawal of the main application (IBA/473/2019) because the Corporate Debtor had provided post-dated cheques for compromise, dated 2019-10-10. The Hon'ble Supreme Court has issued guidelines in the case of Swiss Ribbons Pvt. Limited & Another vs. Union of India & Others (2019 SCC OnLine SC 73), allowing the Petitioner Creditor to withdraw the company petition (IBA) if the Corporate Debtor paid the claim amount or settled the dispute before the constitution of the Committee of Creditors (CoC). The Interim Resolution Professional (IRP) stated that the CoC has not yet been constituted.

## Facts

Netcon Technologies Pvt Ltd initiated insolvency proceedings against Truefix Media Transformation Pvt Ltd under the IBC. The Operational Creditor, Netcon Technologies Pvt Ltd, filed an application to withdraw the main application (IBA/473/2019) on the grounds that Truefix Media Transformation Pvt Ltd had provided post-dated cheques towards a compromise dated 2019-10-10. The Interim Resolution Professional (IRP) stated that the Committee of Creditors (CoC) had not yet been constituted. The IRP had incurred paper publication charges and had not been paid his fee. The application for withdrawal was MA/1087/2019.

## Issues and analysis

### Issue 1: Whether the Operational Creditor can withdraw the insolvency petition (IBA/473/2019) based on a …

**Ratio:** The Supreme Court in Swiss Ribbons Pvt. Limited & Another vs. Union of India &

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**Reasoning:** The court relied on the Supreme Court's guidelines in the Swiss Ribbons case, which

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**Interpretation:** The Supreme Court's ruling in Swiss Ribbons allows for flexibility in

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**Application:** In this case, the Corporate Debtor provided post-dated cheques towards a

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## Parties

- **Judges:** B.S.V. Prakash…; Anil Ku…
- **Appellants:** NETCON TECHNOLOGIE…
- **Respondents:** TRUEFIX MEDIA…

## Timeline

- **2019-10-10 — Compromis…**: Corporate Debtor provided…
- **2019-10-14 — Order Da…**: Court allowed withdrawal of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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