# In the matter of Ashvi Developers Private Limited

> NCLT judgment dated 2022-08-24. Citation: TCN-2022-NCLT-01301. The matter pertains to a Company Petition filed under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 24 Aug 2022
- **Citation:** TCN-2022-NCLT-01301
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ashvi-developers-private-limited-a4c12927

## Summary

### Background

The matter pertains to a Company Petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor sought to withdraw the petition due to a settlement reached with the Corporate Debtor under an OTS (One-Time Settlement) scheme.

## Facts

Canara Bank Limited, the Financial Creditor, filed a Company Petition against Ashvi Developers Private Limited, the Corporate Debtor, under Section 7 of the Insolvency and Bankruptcy Code, 2016. The parties reached a settlement under an OTS scheme. Consequently, the Financial Creditor sought permission to withdraw the Company Petition. The Financial Creditor also requested the liberty to revive the petition if the Corporate Debtor defaults on the OTS payments scheduled for October and November. The court considered these facts before disposing of the petition.

## Issues and analysis

### Issue 1: Whether the Financial Creditor can be granted permission to withdraw the Company Petition based on …

**Ratio:** A Financial Creditor can withdraw a Company Petition if a settlement is reached with the

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**Reasoning:** The court acknowledged the settlement reached between the parties under the OTS scheme as

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**Interpretation:** The interpretation of the law allows for withdrawal of petitions based on

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**Application:** In this case, the Financial Creditor sought to withdraw the petition due to the

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## Parties

- **Judges:** H.V. Subb…; ANURADHA SANJAY…
- **Appellants:** Canara Bank…
- **Respondents:** Ashvi Developers…
- **Advocates:** Nishit D…; Viraj…; +1 more

## Timeline

- **2022-08-24 — Order Da…**: Order sheet of the hearing of Mumbai Bench…

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