# In the matter of Aditya Khaitan vs. Ritesh Prakash Adaitya & Ors. I.A. No. 1029 of 2023 in Company Appeal (AT)(Insolvency) No. 198 of 2023

> NCLAT judgment dated 2023-05-15. Citation: TCN-2023-NCLAT-00529. The appeal was filed against the order dated 10.02.2023, which admitted a Section 7…

- **Court:** NCLAT
- **Order date:** 15 May 2023
- **Citation:** TCN-2023-NCLAT-00529
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/aditya-khaitan-vs-ritesh-prakash-adaitya-ors-ia-no-1029-of-2023-in-company-appea-d4aa52a8

## Summary

### Background

The appeal was filed against the order dated 10.02.2023, which admitted a Section 7 application. An interim order was passed on 22.02.2023. The appellant filed a supplementary affidavit with an agreement between the parties dated 05.05.2023. Certain portions of the agreement were redacted at the respondent's instance for commercial reasons.

## Facts

An appeal was filed against the order dated 10.02.2023, admitting a Section 7 application. An interim order was passed on 22.02.2023. The appellant filed a supplementary affidavit with an agreement between the parties dated 05.05.2023. Certain portions of the agreement were redacted at the respondent's instance for commercial reasons. The respondent's counsel submitted that the financial creditor had settled the matter, and there were no issues between the parties. The appellant's counsel submitted that a considerable amount of expenses had been paid, and any unpaid amount would be taken care of. The IRP's counsel submitted that certain dues had not yet been paid. The court took the settlement agreement on record and closed the CIRP initiated by the order dated

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## Issues and analysis

### Issue 1: Whether the settlement agreement between the parties warrants the closure of the CIRP initiated by …

**Ratio:** When parties reach a settlement and resolve their disputes, the court can take the

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**Reasoning:** The court considered the submissions of the counsels for the respondent, appellant, and

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**Interpretation:** The legal principle is that settlement agreements are generally favored as a

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**Application:** In this case, the court applied the principle by taking the settlement

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Aditya Kh…
- **Respondents:** Ritesh Prakash…

## Timeline

- **2023-02-10 — Order Da…**: Order passed admitting…
- **2023-02-22 — Interim…**: An Interim Order was…

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