# In the matter of Megma RFID and Labels Pvt. Ltd. CP No. (IB) 98-ALD-2020

> NCLT judgment dated 2022-04-05. Citation: TCN-2022-NCLT-03364. The case involves a petition filed under Section 7 of the IBC. The financial creditor sought to…

- **Court:** NCLT
- **Order date:** 5 Apr 2022
- **Citation:** TCN-2022-NCLT-03364
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/megma-rfid-and-labels-pvt-ltd-cp-no-ib-98-ald-2020-f31dab49

## Summary

### Background

The case involves a petition filed under Section 7 of the IBC. The financial creditor sought to withdraw the petition based on an out-of-court settlement.

## Facts

The Small Industries Development Bank of India (SIDBI) filed a petition against MEGMA RFID & LABELS PVT LTD under Section 7 of the IBC. During the proceedings, the financial creditor, SIDBI, sought leave to withdraw the petition due to an out-of-court settlement. The court considered this submission and subsequently dismissed the petition as withdrawn.

## Issues and analysis

### Issue 1: Whether the financial creditor can withdraw a petition filed under Section 7 of the IBC based on an …

**Ratio:** A financial creditor is generally permitted to withdraw a petition filed under Section 7

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**Reasoning:** The court acknowledged the submission of the learned counsel for the financial creditor,

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**Interpretation:** The interpretation is that the IBC allows for flexibility in resolving

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**Application:** In this case, the financial creditor sought to withdraw the petition due to an

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## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Respondents:** MEGMA RFID &…

## Timeline

- **2022-04-05 — Hearing…**: Hearing held on April…
- **N/A — Petition Wit…**: Financial creditor sought leave to withdraw the petition due to an out-of-court…

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