# In the matter of Air Movement & Control System Pvt.  Ltd. IB-504-ND-2020

> NCLT judgment dated 2022-02-04. Citation: TCN-2022-NCLT-04253. The case involves M/s. Navyug Iron Traders as the petitioner and M/s. Air Movement and Control…

- **Court:** NCLT
- **Order date:** 4 Feb 2022
- **Citation:** TCN-2022-NCLT-04253
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/air-movement-control-system-pvt-ltd-ib-504-nd-2020-e7131886

## Summary

### Background

The case involves M/s. Navyug Iron Traders as the petitioner and M/s. Air Movement and Control System Pvt. Ltd. as the respondent. The petitioner filed IA/507/2022 stating that the matter has been settled, and the entire amount has been paid by the Corporate Debtor.

## Facts

M/s. Navyug Iron Traders initiated proceedings against M/s. Air Movement and Control System Pvt. Ltd. under Section 9 of the IBC. The petitioner, Navyug Iron Traders, filed an application (IA/507/2022) stating that the matter had been settled, and the entire amount due had been paid by the Corporate Debtor, Air Movement and Control System Pvt. Ltd. Consequently, the petitioner sought to withdraw the present petition. The learned counsel for the petitioner confirmed the intention to withdraw. The fact that the entire amount has been paid by the Corporate Debtor is the key reason for the withdrawal.

## Issues and analysis

### Issue 1: Whether IA/507/2022 should be allowed, permitting …

**Ratio:** A party is generally allowed to withdraw a petition if the underlying cause of action has

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**Reasoning:** The court reasoned that since the petitioner stated the matter had been settled and the

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**Interpretation:** This interprets the right of a petitioner to withdraw a case when the dispute

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** DHARMINDER…; RAHUL BHA…
- **Appellants:** M/s. Navyug Iron…
- **Respondents:** M/s. Air Movement…

## Timeline

- **2022-02-04 — Order Del…**: Order delivered on 04.02.2022…

## 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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