# In the matter of Wework India Management Pvt. Ltd. C.P. (IB)No. 142-BB-2020

> NCLT judgment dated 2020-08-26. Citation: TCN-2020-NCLT-00779. M/s. IDI Designs Pvt. Ltd. filed a petition under Section 9 of the IBC, 2016, seeking to…

- **Court:** NCLT
- **Order date:** 26 Aug 2020
- **Citation:** TCN-2020-NCLT-00779
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/wework-india-management-pvt-ltd-cp-ibno-142-bb-2020-7d5b7402

## Summary

### Background

M/s. IDI Designs Pvt. Ltd. filed a petition under Section 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Wework India Management Pvt. Ltd. The petition was based on an alleged default of Rs.5,62,92,718 towards the balance payment of work done. The parties subsequently reached a settlement, documented in a Settlement Letter.

## Facts

M/s. IDI Designs Pvt. Ltd. (Operational Creditor) initiated a Corporate Insolvency Resolution Process (CIRP) against M/s. Wework India Management Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, claiming a default of Rs.5,62,92,718/-. The basis for the claim was the outstanding balance for work done. During the proceedings, both parties reached an amicable settlement, documented in a Settlement Letter dated 19.08.2020. As per the settlement, WeWork agreed to pay IDI Rs.4,96,00,000/- in full and final settlement of all dues. The payment was structured in installments, with Rs.2,10,00,000/- due by July 25, 2020, and another Rs.2,10,00,000/- by August 25, 2020. Additionally, Rs.40,00,000/- was to be paid upon 50% completion

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## Issues and analysis

### Issue 1: Whether the petitioner should be allowed to withdraw the petition based on the settlement reached …

**Ratio:** The court has the discretion to allow the withdrawal of a petition if the parties have

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**Reasoning:** The court noted that the parties had mutually settled the issue as evidenced by the

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**Interpretation:** This interpretation allows for the efficient resolution of disputes through

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**Application:** The court applied this principle by allowing the withdrawal of the petition,

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## Parties

- **Judges:** Rajeswara Rao…; Ashutosh C…
- **Appellants:** M/s IDI Designs…
- **Respondents:** M/s. Wework India…

## Timeline

- **2020-08-26 — Order Da…**: The NCLT, Bengaluru Bench, passed an order disposing of the C.P.(IB)No.142/BB/2020 as…
- **2020-08-19 — Settlement Let…**: The parties executed a Settlement…

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