# In the matter of Wearit Global Limited I.A. (IB) No. 271-KB-2019 in C.P. (IB) No. 1039-KB-2019

> NCLT judgment dated 2022-02-24. Citation: TCN-2022-NCLT-03983. Pawan Putra Securities Private Limited, the Financial Creditor, filed an application (I.A. (IB)…

- **Court:** NCLT
- **Order date:** 24 Feb 2022
- **Citation:** TCN-2022-NCLT-03983
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/wearit-global-limited-ia-ib-no-271-kb-2019-in-cp-ib-no-1039-kb-2019-736b3b0b

## Summary

### Background

Pawan Putra Securities Private Limited, the Financial Creditor, filed an application (I.A. (IB) No. 271/KB/2021) in C.P. (IB) No. 1039/KB/2019 seeking the revival/restoration of the application CP (IB) No. 1039/KB/2019, which was initially filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Wearit Global Limited, the Corporate Debtor. The original petition was dismissed on 31st January 2020, due to a settlement agreement between the parties. The Financial Creditor claims that the Corporate Debtor failed to comply with the settlement terms, leading to the current application for revival.

## Facts

Pawan Putra Securities Private Limited (Financial Creditor) filed CP (IB) No. 1039/KB/2019 under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Wearit Global Limited (Corporate Debtor) for initiating CIRP. A settlement agreement was reached on 2020-01-31, where the Corporate Debtor agreed to pay ₹1,25,00,000 to the Financial Creditor. Consequently, the Company Petition was dismissed on 2020-01-31. The Corporate Debtor failed to repay the principal amount of Rs.95,00,000 outstanding as of 2019-12-31, along with interest. The Financial Creditor sent a demand letter on 2020-12-31, but no payment was received. The Corporate Debtor had paid ₹30 lakh out of ₹1.25 Crore, leaving ₹95 lakh unpaid. The Financial Creditor then filed I.A. (IB) No. 271/KB/2021

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## Issues and analysis

### Issue 1: Whether a proceeding that has been withdrawn without leave to revive the proceeding, can be …

**Ratio:** A petition withdrawn pursuant to a settlement agreement can be revived if the settlement

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**Reasoning:** The court reasoned that the withdrawal was allowed pursuant to a settlement agreement,

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**Interpretation:** The interpretation hinges on the nature of the withdrawal. If the withdrawal is

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**Application:** In this case, the original petition was withdrawn because of a settlement

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Pawan Putra…
- **Respondents:** Wearit Global…

## Timeline

- **2019-01-01 — CP (IB) No. 1039/KB/2019…**: CP (IB) No. 1039/KB/2019 was filed by Pawan Putra Securities Private Limited against…
- **2020-01-31 — Settlement Ag…**: The Financial Creditor and the Corporate…

## 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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