Waycool Foods Insolvency Petition Settled and Withdrawn

Authority: National Company Law Tribunal (NCLT), Division Bench (Court–I), Chennai

Order Date: 16 June 2026

Case Overview

The petition was filed by Vinod K Dasari (Petitioner) against Waycool Foods and Products Pvt Ltd (Respondent) under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The hearing was held via video conference before a bench comprising Hon'ble Shri. Sanjiv Jain, Member (Judicial) and Hon'ble Shri Venkataraman Subramaniam, Member (Technical).

During the hearing, the Petitioner's counsel submitted that a settlement agreement had been signed between the parties on 09 June 2026. As part of this settlement, the specific action of shares being transferred was completed. Consequently, all disputes were resolved amicably, leading the Petitioner to file a memo to withdraw the insolvency petition.

A key condition of the withdrawal was that the Petitioner reserved the right to revive the petition if the terms and conditions of the settlement agreement were not fulfilled by the Respondent. The Respondent's counsel, on instructions, undertook to abide by the settlement terms and confirmed they would not object to the revival of the petition should a breach occur.

Final Outcome

The NCLT Chennai bench recorded the submissions of both parties and took the withdrawal memo and settlement agreement on record. The petition CP(IB)/21(CHE)/2025 was formally disposed of as settled. The final order grants explicit liberty (permission) to the Petitioner to revive this petition in the future if the Respondent fails to fulfill the conditions of the settlement agreement dated 09.06.2026.

Topics: Insolvency, Settlement Agreement