# In the matter of Aarif Abdul Razak Chunawala vs. LPHP Real Estate Pvt. Ltd. & Anr.

> NCLAT judgment dated 2024-02-13. Citation: TCN-2024-NCLAT-00642. The case involves an appeal concerning a settlement agreement between the Appellant (Aarif…

- **Court:** NCLAT
- **Order date:** 13 Feb 2024
- **Citation:** TCN-2024-NCLAT-00642
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/aarif-abdul-razak-chunawala-vs-lphp-real-estate-pvt-ltd-anr-f9f280b1

## Summary

### Background

The case involves an appeal concerning a settlement agreement between the Appellant (Aarif Abdul Razak Chunawala) and the Financial Creditor. The Appellant had agreed to pay 12 Crores in 2021, but only Rs. 5.50 Crores were paid, with Rs. 6.50 Crores remaining outstanding. The Appellant claims to accept liability and intends to pay the remaining amount. The Corporate Debtor, a Real Estate Company, is facing potential jeopardy if insolvency proceedings continue.

## Facts

Aarif Abdul Razak Chunawala (Appellant) entered into a settlement agreement with a Financial Creditor to pay 12 Crores in 2021. The Appellant paid Rs. 5.50 Crores but failed to pay the remaining Rs. 6.50 Crores. The Appellant claims to accept liability and intends to pay the outstanding amount. The Respondent claims that the Appellant's cheques bounced and a promised payment from 06.06.2022 was not made. The Corporate Debtor is a Real Estate Company. The Appellant's counsel stated that they will pay Rs. 2 Crores within two weeks and the rest within three months. The IRP is instructed to keep the company as a going concern but not take further steps in the CIRP, provided the payment is made.

## Issues and analysis

### Issue 1: Whether the submissions made by the …

**Ratio:** The principle of natural justice requires that all submissions made by parties in a legal

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**Reasoning:** The court acknowledges the need to examine the claims and counterclaims made by both the

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**Interpretation:** This implies that the court is not taking any submission at face value and will

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**Application:** The court's decision to issue a notice indicates that it intends to investigate

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Aarif Abdul Razak…
- **Respondents:** Real Estate…; LPHP Real Estate…

## Timeline

- **2021-01-01 — Settlement Ag…**: Appellant entered into a Settlement with the…
- **2022-06-06 — Payment P…**: Appellant stated they will pay within one year…

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