# In the matter of Atithi Builders and Constructors Private Limited

> NCLT judgment dated 2022-08-24. Citation: TCN-2022-NCLT-01300. Canara Bank Limited filed a Company Petition against Atithi Builders and Constructors Private…

- **Court:** NCLT
- **Order date:** 24 Aug 2022
- **Citation:** TCN-2022-NCLT-01300
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/atithi-builders-and-constructors-private-limited-69e09f57

## Summary

### Background

Canara Bank Limited filed a Company Petition against Atithi Builders and Constructors Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor sought to withdraw the petition as the matter was settled under OTS (One Time Settlement).

## Facts

Canara Bank Limited initiated a corporate insolvency resolution process against Atithi Builders and Constructors Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016. The parties reached a settlement under the OTS scheme. The Financial Creditor sought 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 The court disposed of the petition as withdrawn, granting the Financial Creditor the liberty to file a fresh petition in case of any breach of payment committed by the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether the Company Petition can be disposed of as withdrawn based on the settlement reached …

**Ratio:** A Company Petition can be disposed of as withdrawn if the parties have reached a

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**Reasoning:** The court considered the settlement reached between the parties under the OTS scheme and

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**Interpretation:** The legal principle allows for the withdrawal of a Company Petition when a

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**Application:** In this case, the parties reached a settlement under the OTS scheme, and the

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## Parties

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

## Timeline

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

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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