# In the matter of Assotech Moonshine Urban Developers Pvt. Ltd. {IA-3055-2023 in IB-135-ND-2023]

> NCLT judgment dated 2023-06-15. Citation: TCN-2023-NCLT-02939. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 15 Jun 2023
- **Citation:** TCN-2023-NCLT-02939
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/assotech-moonshine-urban-developers-pvt-ltd-ia-3055-2023-in-ib-135-nd-2023-10c98139

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The applicant is Canara Constructions and Engineering Pvt. Ltd., and the respondent is Assotech Moonshine Urban Developers Pvt. Ltd. An application, IA-3055/2023, was filed, seeking disposal of the main application due to a settlement between the parties. Subsequently, the petitioner sought to withdraw the main application IB-135/ND/2023.

## Facts

Canara Constructions and Engineering Pvt. Ltd. filed an application under Section 7 of the IBC, 2016, against Assotech Moonshine Urban Developers Pvt. Ltd. IA-3055/2023 was filed to dispose of the Section 7 application due to a settlement between the parties. The petitioner then sought to withdraw the main application, IB-135/ND/2023. The court had already heard arguments on 18.05.2023 and reserved the petition for orders. Despite this, the court allowed the withdrawal but imposed a cost of Rs. 10,000 each on the petitioner and respondent, to be deposited in the Prime Minister's Relief Fund. The relevance of the settlement is that it prompted the withdrawal of the main application.

## Issues and analysis

### Issue 1: Whether IA-3055/2023 should be allowed, disposing of the Section 7 application in light of the …

**Ratio:** The principle of allowing parties to settle disputes amicably is generally favored in

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**Reasoning:** The court allowed IA-3055/2023, indicating its acceptance of the settlement as a valid

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**Interpretation:** This reflects the court's interpretation of the IBC's objectives, which include

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**Application:** The settlement between Canara Constructions and Assotech Moonshine was the

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## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** Canara Constructio…
- **Respondents:** Assotech Moonshine…

## Timeline

- **2023-05-18 — Arguments…**: The court heard arguments at length and…
- **2023-06-15 — Order Del…**: The court allowed IA-3055/2023 and allowed the withdrawal of IB-135/ND/2023, dismissing…

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