# In the matter of Xrbia Developers Ltd.

> NCLT judgment dated 2024-01-25. Citation: TCN-2024-NCLT-02878. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 25 Jan 2024
- **Citation:** TCN-2024-NCLT-02878
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/xrbia-developers-ltd-9bb65d6f

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed against Xrbia Developers Limited by New Consolidated Construction Company Limited. The erstwhile director submitted that the matter has been settled, and the application is to be allowed, especially in view of the order of Hon'ble NCLAT in Company Appeal No. 1017/2022. The Hon'ble NCLAT observed that under Rule 11 of the NCLT Rules, the Adjudicating Authorities are empowered to allow the withdrawal of the application based on the settlement between the Applicant and the Corporate Debtor.

## Facts

New Consolidated Construction Company Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Xrbia Developers Limited. The counsel for the erstwhile director submitted that the matter had been settled. The counsel for the IRP submitted that a formal application was pending scrutiny. The erstwhile director did not press the reference made in the IA and had no complaints against the IRP. The Hon'ble NCLAT had observed that the Adjudicating Authorities are empowered to allow the withdrawal of the application based on the settlement between the Applicant and the Corporate Debtor. This observation is relevant because it provides the legal basis for allowing the withdrawal of the application.

## Issues and analysis

### Issue 1: Whether the application can be withdrawn based on the settlement between the applicant and the …

**Ratio:** Rule 11 of the NCLT Rules empowers the Adjudicating Authorities to allow the withdrawal

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**Reasoning:** The Hon'ble NCLAT has observed that in exercise of the powers under Rule 11 of the NCLT

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**Interpretation:** This means that if the applicant and the corporate debtor reach a settlement,

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**Application:** In this case, the counsel for the erstwhile director submitted that the matter

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## Parties

- **Judges:** SHRI. K R SAJI…; Madhu S…
- **Appellants:** New Consolidated…
- **Respondents:** XRBIA Developers…

## Timeline

- **2024-01-25 — Order Del…**: Order delivered on 25.01.2024, allowing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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