# In the matter of Nangloi Water Services Private Limited

> NCLT judgment dated 2024-02-22. Citation: TCN-2024-NCLT-02484. The case involves Bank of India as the applicant/petitioner and Nangloi Water Services Private…

- **Court:** NCLT
- **Order date:** 22 Feb 2024
- **Citation:** TCN-2024-NCLT-02484
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/nangloi-water-services-private-limited-2e71e270

## Summary

### Background

The case involves Bank of India as the applicant/petitioner and Nangloi Water Services Private Limited as the respondent. The applicant filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), r.w. 14. The counsel for the petitioner submitted that the parties are in talks to arrive at a settlement regarding the defaulted amount to be paid by the Corporate Debtor.

## Facts

Bank of India filed a petition against Nangloi Water Services Private Limited under Section 7 of the IBC, r.w. 14, due to a default in payment. The counsel for Bank of India informed the Tribunal that settlement talks were underway. The Tribunal acknowledged the 14-day timeline for admitting or rejecting applications under Section 7(4) of the IBC, 2016, and the Supreme Court's ruling on the non-binding nature of timelines. The relevance of these facts lies in the Tribunal's decision to dispose of the petition to allow settlement talks to progress, with the option to revive the petition if settlement fails within two weeks.

## Issues and analysis

### Issue 1: Whether the Tribunal should dispose of the petition to allow the parties to pursue settlement …

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

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

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**Interpretation:** This demonstrates the Tribunal's willingness to encourage settlement

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**Application:** The Tribunal applied this principle by disposing of the petition, contingent on

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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 against Nangloi Water Services Private Limited under…
- **2024-02-22 — Order Del…**: The Tribunal disposed of the petition to enable settlement talks, with the option to…

## 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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