# In the matter of Deepak Fasteners Ltd. IA No. 318-2022 And CP(IB) No. 264-Chd-Pb-2021

> NCLT judgment dated 2022-06-03. Citation: TCN-2022-NCLT-02428. The case involves Punjab National Bank, the petitioner/financial creditor, and Deepak Fasteners…

- **Court:** NCLT
- **Order date:** 3 Jun 2022
- **Citation:** TCN-2022-NCLT-02428
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/deepak-fasteners-ltd-ia-no-318-2022-and-cpib-no-264-chd-pb-2021-a865cbf3

## Summary

### Background

The case involves Punjab National Bank, the petitioner/financial creditor, and Deepak Fasteners Ltd, the respondent/corporate debtor. The petitioner bank initiated proceedings under Section 7 of the IBC, 2016. The bank accepted a One Time Settlement (OTS) and issued a No Objection Certificate (NOC) regarding the payment. The entire amount was stated to be paid vide NOC dated 31.05.2022.

## Facts

Punjab National Bank (PNB) initiated proceedings against Deepak Fasteners Ltd under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. PNB, the financial creditor, accepted a One Time Settlement (OTS) from Deepak Fasteners Ltd, the corporate debtor. As a result of the OTS, PNB issued a No Objection Certificate (NOC) confirming that the entire amount due had been paid. The NOC was dated 31.05.2022. The respondent's counsel presented the NOC to the Tribunal. Consequently, PNB sought permission from the Tribunal to withdraw the insolvency petition. The key fact is the acceptance of the OTS and the issuance of the NOC, indicating full payment, which formed the basis for the withdrawal request.

## Issues and analysis

### Issue 1: Whether the present petition should be dismissed as withdrawn in light of the One Time Settlement …

**Ratio:** A petition can be dismissed as withdrawn when the parties have reached a settlement, and

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**Reasoning:** The Tribunal reasoned that since the petitioner bank had accepted the OTS and issued an

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**Interpretation:** The legal issue revolves around the interpretation of the IBC and the

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

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## Parties

- **Judges:** SUBRATA KUM…; Harnam Singh…
- **Appellants:** Punjab National…
- **Respondents:** Deepak Fasteners…

## Timeline

- **2022-05-31 — NOC Date…**: The entire amount is stated to be…
- **2022-06-03 — Order Da…**: The present petition is ordered to be dismissed as withdrawn. Consequently, IA No.…

## 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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