# In the matter of Yag Mag Labs Private Limited CP (IB) No. 321-9-HDB-2018

> NCLT judgment dated 2019-03-06. Citation: TCN-2019-NCLT-04580. The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC)…

- **Court:** NCLT
- **Order date:** 6 Mar 2019
- **Citation:** TCN-2019-NCLT-04580
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/yag-mag-labs-private-limited-cp-ib-no-321-9-hdb-2018-d6d6f55d

## Summary

### Background

The case involves a petition filed under Section 9 of the Insolvency and Bankruptcy Code (IBC) by Swastika Chemicals, an operational creditor, against Yagmag Labs Pvt Ltd, the corporate debtor. The operational creditor sought initiation of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. However, during the proceedings, it was brought to the court's attention that CIRP had already been initiated against the corporate debtor in another case (CP(IB)No. 593/9/HDB/2019), and a moratorium had been imposed.

## Facts

Swastika Chemicals, an operational creditor, filed a petition under Section 9 of the IBC against Yagmag Labs Pvt Ltd, the corporate debtor, seeking to initiate CIRP. During the proceedings, it was revealed that CIRP had already commenced against Yagmag Labs Pvt Ltd in CP(IB)No. 593/9/HDB/2019, and a moratorium had been imposed. Consequently, Swastika Chemicals filed a withdrawal memo. The court noted that the petition by Swastika Chemicals had not yet been admitted. The relevance of the CIRP commencement and the moratorium is that they legally bar the continuation of other proceedings against the corporate debtor.

## Issues and analysis

### Issue 1: Whether the operational creditor can withdraw the …

**Ratio:** Rule 8 of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules,

…

**Reasoning:** The court reasoned that since the petition filed by the operational creditor had not yet

…

**Interpretation:** Rule 8 provides a procedural mechanism for withdrawing petitions before they

…

**Application:** The court applied Rule 8 to the specific facts, noting that the petition was

…

## Parties

- **Judges:** Ratakonda…
- **Appellants:** Swastika Ch…
- **Respondents:** Yagmag Labs Pvt…
- **Advocates:** G. Bheema…; P. Vi…; +2 more

## Timeline

- **2018-01-01 — Filing of CP(IB)…**: Swastika Chemicals filed a petition against…
- **2019-03-06 — Hearing…**: Hearing held on…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/yag-mag-labs-private-limited-cp-ib-no-321-9-hdb-2018-d6d6f55d