# In the matter of Nangloi Water Services Private Limited

> NCLT judgment dated 2024-02-22. Citation: TCN-2024-NCLT-02477. The case involves a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), r.w.…

- **Court:** NCLT
- **Order date:** 22 Feb 2024
- **Citation:** TCN-2024-NCLT-02477
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nangloi-water-services-private-limited-18b64590

## Summary

### Background

The case involves a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), r.w. 14, where the applicant, Bank of India, seeks to initiate corporate insolvency resolution process against the corporate debtor, Nangloi Water Services Private Limited. The counsel for the petitioner submitted that the parties are in talks to arrive at a settlement regarding the defaulted amount.

## Facts

Bank of India filed a petition under Section 7 of the IBC against Nangloi Water Services Private Limited. The petitioner's counsel informed the court that settlement talks were underway. The Tribunal noted the 14-day timeline for admitting or rejecting applications under Section 7(4) of the IBC and the Supreme Court's ruling on the non-binding nature of timelines. The Tribunal disposed of the petition to allow for settlement, with a provision for revival if settlement fails within two weeks. The key fact is the ongoing settlement talks which led the court to dispose of the petition temporarily.

## Issues and analysis

### Issue 1: Whether the Tribunal should keep the application pending given the ongoing settlement talks between …

**Ratio:** The Tribunal has the discretion to dispose of a petition to facilitate settlement

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**Reasoning:** The Tribunal considered the submission of the petitioner's counsel regarding ongoing

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**Interpretation:** This reflects a pragmatic approach, recognizing that settlement is often a more

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**Application:** The Tribunal disposed of the petition, providing a two-week window for

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## Parties

- **Judges:** SH. ASHOK KUMAR…; SH. SUBRATA KUMAR…
- **Appellants:** Bank of…
- **Respondents:** Nangloi Water…

## Timeline

- **N/A — Petition…**: Bank of India filed a petition under Section 7 of the IBC against Nangloi Water Services…
- **2024-02-22 — Order Del…**: The Tribunal disposed of the petition to enable settlement negotiations, with a two-week…

## 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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