# In the matter of Prajay Holdings Pvt. Ltd.

> NCLT judgment dated 2023-04-27. Citation: TCN-2023-NCLT-03594. The case pertains to Company Petition IB/17/2021, filed under Section 7 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 27 Apr 2023
- **Citation:** TCN-2023-NCLT-03594
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/prajay-holdings-pvt-ltd-b61e5a27

## Summary

### Background

The case pertains to Company Petition IB/17/2021, filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The petitioner, White Stock Ltd, filed a memo stating that pursuant to a settlement agreement dated 24.04.2023, they are not pursuing the Company Petition.

## Facts

White Stock Ltd, the Financial Creditor, initiated a Company Petition (IB/17/2021) under Section 7 of the IBC, 2016, against Prajay Holdings Pvt Ltd, the Corporate Debtor. Subsequently, White Stock Ltd filed a memo stating that pursuant to a settlement agreement dated 2023-04-24, they would not pursue the Company Petition. The relevance of this fact is that the settlement agreement led to the dismissal of the petition.

## Issues and analysis

### Issue 1: Whether the Company Petition should be dismissed based on the petitioner's memo stating that they …

**Ratio:** When a petitioner expresses their intention not to pursue a petition due to a settlement

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**Reasoning:** The court reasoned that since the petitioner filed a memo stating they are not pursuing

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**Interpretation:** This legal issue involves the interpretation of the court's power to dismiss a

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**Application:** In this case, the petitioner, White Stock Ltd, filed a memo stating they are

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. CHARAN…
- **Appellants:** White Sto…
- **Respondents:** Prajay Holdings…

## Timeline

- **2021-01-01 — Company Petiti…**: Company Petition…
- **2023-04-24 — Settlement Ag…**: Settlement agreement was…

## 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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