# In the matter of IREO Pvt. Ltd.

> NCLT judgment dated 2024-03-22. Citation: TCN-2024-NCLT-01976. The application IA 1036/2024 was filed under Section 60(5) of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 22 Mar 2024
- **Citation:** TCN-2024-NCLT-01976
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ireo-pvt-ltd-f0ab58b8

## Summary

### Background

The application IA 1036/2024 was filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 8 of IBBI Regulations, seeking withdrawal of the company petition filed under Section 7 of the Code. The applicant requested permission to withdraw Company Petition CP(IB) No. 355/ND/2023 with the option to revive proceedings if the Corporate Debtor defaults on settlement terms. The Company Petition (IB) 355/ND/2023 was initially filed under Section 7 of the Code to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor for failing to repay the Financial Debt.

## Facts

The application IA 1036/2024 was filed seeking withdrawal of Company Petition CP(IB) No. 355/ND/2023, which was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Tribunal issued a notice of the Company Petition to the Corporate Debtor on June 14, 2023. The Original Bond Holders assigned and transferred the Financial Debt to M/s. DLF Limited, who became the 'Current Bond Holder'. The Financial Creditor, Current Bond Holder, and Corporate Debtor agreed to settle the dispute in relation to the Financial Debt and are in the process of implementing the settlement terms. The Financial Creditor sought to withdraw the petition to avoid burdening the Adjudicating Authority while the settlement was being implemented. The settlement between the Applicants and

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## Issues and analysis

### Issue 1: Whether the Financial Creditor should be allowed to withdraw the Company Petition bearing CP(IB) …

**Ratio:** The legal principle applied is based on the provisions of the Insolvency and Bankruptcy

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**Reasoning:** The court reasoned that the Financial Creditor sought to withdraw the petition because

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**Interpretation:** The interpretation involves understanding the provisions of the IBC that allow

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** SHRI. MAHENDRA…; RAHUL BHA…
- **Appellants:** Axis Trustee…
- **Respondents:** IREO PVT.…
- **Advocates:** Divyam Ag…; Aniket Ag…; +2 more

## Timeline

- **2023-06-14 — Notice I…**: Tribunal issued notice of the Company…
- **2024-03-22 — Order Pron…**: Order pronounced allowing the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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