# In the matter of Vardhman Polytex Limited CP (IB) No. 10-Chd-Pb-2019

> NCLT judgment dated 2019-05-05. Citation: TCN-2019-NCLT-03485. The case pertains to a petition filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 5 May 2019
- **Citation:** TCN-2019-NCLT-03485
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vardhman-polytex-limited-cp-ib-no-10-chd-pb-2019-45d75e79

## Summary

### Background

The case pertains to a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016. Sankeshwar Packaging Private Limited, the operational creditor, initiated the insolvency proceedings against Vardhman Polytex Limited, the corporate debtor. The petitioner sought to withdraw the petition.

## Facts

Sankeshwar Packaging Private Limited, acting as the operational creditor, initiated insolvency proceedings against Vardhman Polytex Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. During the proceedings, the petitioner's counsel stated that the debt had been settled between the parties. The petitioner then requested to withdraw the insolvency petition. The court considered this request in light of the reported settlement.

## Issues and analysis

### Issue 1: Whether the petitioner should be allowed to withdraw the insolvency petition given the settlement …

**Ratio:** The principle applied is that if the debt has been settled between the parties, the

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**Reasoning:** The court's reasoning is based on the statement made by the learned counsel for the

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**Interpretation:** The interpretation is that the court has the discretion to allow the withdrawal

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**Application:** In this specific case, the court applied the principle by accepting the

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## Parties

- **Judges:** M.K. Sh…; Pradeep R.…
- **Appellants:** Sankeshwar…
- **Respondents:** Vardhman Polytex…

## Timeline

- **2019-04-05 — Order Da…**: Order permitting the withdrawal…

## 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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