# In the matter of Kadmawala Textile Mills Pvt. Ltd.

> NCLT judgment dated 2023-08-02. Citation: TCN-2023-NCLT-02207. The case pertains to proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC).…

- **Court:** NCLT
- **Order date:** 2 Aug 2023
- **Citation:** TCN-2023-NCLT-02207
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kadmawala-textile-mills-pvt-ltd-f1261685

## Summary

### Background

The case pertains to proceedings under Section 9 of the Insolvency and Bankruptcy Code (IBC). Textile Chemical Industries filed an application against Kadmawala Textile Mills Pvt Ltd. The applicant sought to withdraw the application.

## Facts

Textile Chemical Industries filed an application under Section 9 of the IBC against Kadmawala Textile Mills Pvt Ltd. The applicant, Textile Chemical Industries, through its counsel Ms. Ritu Chawla, sought to withdraw the application, stating that the matter had been settled. Mr. Riddhesh Trivedi, the counsel for the Corporate Debtor, Kadmawala Textile Mills Pvt Ltd, confirmed that the matter had been settled with the applicant. The application number is CP(IB)/340(AHM)2022.

## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the IBC can be allowed to be withdrawn based on …

**Ratio:** An application can be withdrawn if the applicant and the corporate debtor have settled

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**Reasoning:** The court accepted the submissions of both the applicant's and the corporate debtor's

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**Interpretation:** This reflects the principle that parties are free to settle their disputes, and

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**Application:** In this case, since both parties confirmed the settlement, the court applied

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## Parties

- **Judges:** SHAMMI…; Ajai Das Me…
- **Appellants:** Textile Chemical…
- **Respondents:** Kadmawala Textile…

## Timeline

- **N/A — Application…**: Textile Chemical Industries filed an application under Section 9 of the IBC against…
- **2023-08-02 — Order Del…**: The court allowed the withdrawal of the application CP(IB) 340 of 2022 and disposed of…

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