# In the matter of Auto Vision India Private Limited IA-241-2022 in (IB)-289(ND)2021

> NCLT judgment dated 2022-01-20. Citation: TCN-2022-NCLT-04400. The case involves M/S Prompt Enterprises Private Limited as the applicant/petitioner and M/S…

- **Court:** NCLT
- **Order date:** 20 Jan 2022
- **Citation:** TCN-2022-NCLT-04400
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/auto-vision-india-private-limited-ia-241-2022-in-ib-289nd2021-93a3ea14

## Summary

### Background

The case involves M/S Prompt Enterprises Private Limited as the applicant/petitioner and M/S Auto Vision India Private Limited as the respondent. The matter was brought under Section 9 of the IBC, 2016. The counsels for both the operational creditor and the respondent submitted that the matter has been settled, and the amount has already been paid to the operational creditor. The operational creditor's counsel confirmed the receipt of the amount.

## Facts

M/S Prompt Enterprises Private Limited initiated proceedings against M/S Auto Vision India Private Limited under Section 9 of the IBC, 2016. During the proceedings, both parties reached a settlement, with the respondent paying the amount due to the operational creditor. The operational creditor confirmed the receipt of the payment. Consequently, the petitioner sought to withdraw the main application, and the respondent requested the settlement agreement to be recorded. The key fact is the settlement between the parties, leading to the petitioner's request for withdrawal.

## Issues and analysis

### Issue 1: Whether the Petitioner should be allowed to withdraw the main petition IB-289/ND/2021 given the …

**Ratio:** A petitioner is generally allowed to withdraw a petition when a settlement has been

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**Reasoning:** The court reasoned that since the matter had been settled and the operational creditor

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**Interpretation:** This legal issue involves the interpretation of the court's power to allow

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**Application:** In this case, the ratio and reasoning were applied to the specific facts where

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## Parties

- **Judges:** ABNI RANJAN KUMAR…; L. N. G…
- **Appellants:** M/s Prompt…
- **Respondents:** M/S AUTO VISION…

## Timeline

- **2022-01-20 — Order Del…**: Order delivered on 20.01.2022,…

## 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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