# In the matter of Elegant Infracon Private Limited

> NCLT judgment dated 2024-05-15. Citation: TCN-2024-NCLT-01346. The Applicant filed an application seeking to withdraw the Section 7 petition (IB-69(ND)/2021)…

- **Court:** NCLT
- **Order date:** 15 May 2024
- **Citation:** TCN-2024-NCLT-01346
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/elegant-infracon-private-limited-af88cadc

## Summary

### Background

The Applicant filed an application seeking to withdraw the Section 7 petition (IB-69(ND)/2021) based on a settlement agreement dated 04.05.2024. The petition under Section 7 of IBC was admitted on 30.04.2024, and Mr. Naresh Kumar Aggarwal was appointed as the IRP. The CoC had not yet been constituted. The application for withdrawal was jointly moved by the Applicant/Financial Creditor and the Respondent/Corporate Debtor. The IRP endorsed the settlement, confirmed receipt of dues, and recommended withdrawal.

## Facts

Narendra Singh Rawat & Ors filed an application under Section 7 of the IBC, 2016 against M/s Elegant Infracon Pvt Ltd. The application was admitted on 30.04.2024, and an IRP, Mr. Naresh Kumar Aggarwal, was appointed. Before the CoC could be constituted, the parties reached a settlement on 04.05.2024. The Applicant and the Corporate Debtor jointly moved an application to withdraw the Section 7 petition. The IRP confirmed that he had received all dues and recommended the withdrawal. The court considered the submissions of the parties' counsel and allowed the withdrawal, nullifying the CIRP order.

## Issues and analysis

### Issue 1: Whether the Applicant should be permitted to withdraw the Section 7 petition (IB-69(ND)/2021) given …

**Ratio:** A settlement between parties in an insolvency proceeding can be a valid ground for

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**Reasoning:** The court considered the submissions of the counsels and the fact that a settlement had

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**Interpretation:** This reflects the principle that the IBC aims to facilitate resolution and

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**Application:** In this case, the settlement between Narendra Singh Rawat & Ors (Applicant)

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## Parties

- **Judges:** BACHU VENKAT…; RAHUL BHA…
- **Appellants:** Narendra Singh…
- **Respondents:** M/s Elegant…

## Timeline

- **2024-04-30 — Admission of Section 7…**: The Section 7 petition (IB-69(ND)/2021) filed under the IBC was admitted, and Mr. Naresh…
- **2024-05-04 — Settlement Ag…**: The parties arrived at a…

## 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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