# In the matter of Fantasy Buildwell Pvt. Ltd. (IB)-481(PB)-2019

> NCLT judgment dated 2022-02-14. Citation: TCN-2022-NCLT-04158. The case involves an application (IA-4263/2021) filed by the Original Applicant-Financial…

- **Court:** NCLT
- **Order date:** 14 Feb 2022
- **Citation:** TCN-2022-NCLT-04158
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fantasy-buildwell-pvt-ltd-ib-481pb-2019-94203e4a

## Summary

### Background

The case involves an application (IA-4263/2021) filed by the Original Applicant-Financial Creditor seeking directions in terms of Section 7 of the Insolvency and Bankruptcy Code (IBC). A settlement was reached between the parties, documented in an Addendum to the Memorandum of Understanding (MoU) dated 2022-01-04. The original MoU was dated 2019-04-22. The applicant sought to withdraw the application based on the settlement.

## Facts

Tej Mohan Sachdev, the applicant/petitioner, filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Fantasy Buildwell Pvt. Ltd., the respondent. During the proceedings, the parties reached a settlement, documented in an Addendum to the Memorandum of Understanding dated 2022-01-04. The original Memorandum of Understanding was dated 2019-04-22. Based on this settlement, the applicant sought to withdraw IA-4263/2021, an application filed in connection with the main petition. The court considered the settlement and allowed the withdrawal, closing both the application and the main petition CP (IB)-481(PB)/2019. The addendum to the memorandum of understanding was forwarded to the tribunal.

## Issues and analysis

### Issue 1: Whether the application IA-4263/2021 should be allowed to be withdrawn based on the settlement …

**Ratio:** A party is generally allowed to withdraw an application when a settlement has been

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**Reasoning:** The court considered the submission of the applicant's counsel that a settlement had been

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**Interpretation:** This aligns with the principle that courts should encourage and facilitate

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**Application:** The court applied this principle by allowing the applicant to withdraw

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## Parties

- **Judges:** Ramalingam…; AVINASH K.…
- **Appellants:** Tej Mohan S…
- **Respondents:** Fantasy Buildwell…

## Timeline

- **2019-04-22 — Original Memorandum of…**: The original Memorandum of…
- **2022-01-04 — Addendum to Memorandum…**: The parties entered into an Addendum to the Memorandum of Understanding, indicating a…

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