# In the matter of Color Palette Pvt. Ltd.

> NCLT judgment dated 2023-05-23. Citation: TCN-2023-NCLT-03227. The case involves an application (IA/2844/2023) filed by the Interim Resolution Professional…

- **Court:** NCLT
- **Order date:** 23 May 2023
- **Citation:** TCN-2023-NCLT-03227
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/color-palette-pvt-ltd-5fca5e99

## Summary

### Background

The case involves an application (IA/2844/2023) filed by the Interim Resolution Professional (IRP) seeking permission to withdraw a company petition (IB-777/ND/2022). The basis for the withdrawal is that the parties involved have reached a settlement agreement dated 2023-04-28.

## Facts

The Interim Resolution Professional (IRP) filed an application (IA/2844/2023) seeking permission to withdraw the company petition bearing IB-777/ND/2022. The reason for seeking withdrawal is that the parties involved, M/s. Chants Events and Promotions Pvt. Ltd. (Petitioner/Operational Creditor) and M/s. Color Palette Pvt. Ltd. (Respondent/Corporate Debtor), have settled the matter. A settlement agreement was reached between the parties on 2023-04-28. The court heard submissions from the counsel for the Resolution Professional (RP) and the counsel for the Operational Creditor. The key fact is the settlement agreement, which led to the IRP's application for withdrawal and the subsequent dismissal of the company petition.

## Issues and analysis

### Issue 1: Whether the company petition bearing IB-777/ND/2022 should be dismissed as withdrawn, given the …

**Ratio:** When parties to a company petition reach a settlement agreement, the court may allow the

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**Reasoning:** The court's reasoning is based on the submissions made by both the counsel for the RP and

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**Interpretation:** The interpretation is that settlement agreements are favored in insolvency

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**Application:** In this specific case, the existence of the settlement agreement dated

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## Parties

- **Judges:** BACHU VENKAT…; RAHUL BHA…
- **Appellants:** M/s. Chants…
- **Respondents:** M/s. Color…

## Timeline

- **2023-04-28 — Settlement Ag…**: The parties, M/s. Chants Events and Promotions Pvt. Ltd. and M/s. Color Palette Pvt.…
- **2023-05-23 — Order Del…**: The order was delivered on 2023-05-23,…

## 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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