# In the matter of B.M. Pipes Private Limited Vs. Eta Engineering Private Limited CA(AT) (Insolvency) No. 281 of 2019

> NCLAT judgment dated 2019-09-30. Citation: TCN-2019-NCLAT-00231. The case involves a Company Appeal (AT) (Insolvency) No. 281 of 2019 before the National…

- **Court:** NCLAT
- **Order date:** 30 Sept 2019
- **Citation:** TCN-2019-NCLAT-00231
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bm-pipes-private-limited-vs-eta-engineering-private-limited-ca-9eb29e9b

## Summary

### Background

The case involves a Company Appeal (AT) (Insolvency) No. 281 of 2019 before the National Company Law Appellate Tribunal (NCLAT) in New Delhi. M/s. B.M. Pipes Private Limited, the appellant, filed the appeal against M/s. Eta Engineering Private Limited, the respondent. The dispute arose from unpaid dues for the supply of PVC pipes and fittings by BM Pipes to ETA Engineering. BM Pipes had initiated a civil suit for recovery of Rs. 5,09,039/- along with interest. Subsequently, both parties decided to settle the matter amicably.

## Facts

M/s. B.M. Pipes Private Limited (BM Pipes) filed a Company Appeal (AT) (Insolvency) No. 281 of 2019 against M/s. Eta Engineering Private Limited (ETA Engineering) before the National Company Law Appellate Tribunal (NCLAT). The dispute originated from the supply of PVC pipes and fittings by BM Pipes to ETA Engineering, for which dues remained unpaid. BM Pipes initiated a Civil Suit No. 376 of 2017 before the Tis Hazari Courts, Delhi, seeking recovery of Rs. 5,09,039/- along with interest. Subsequently, both parties entered into a Memorandum of Settlement dated 28th September 2019, wherein ETA Engineering acknowledged its liabilities and agreed to pay Rs. 12,00,000/- to BM Pipes in full and final settlement. ETA provided post-dated cheques totaling Rs. 8 lacs and agreed

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## Issues and analysis

### Issue 1: Whether the NCLAT should set aside the impugned order dated 29th January 2019, based on the Terms …

**Ratio:** The principle of upholding settlements and promoting amicable resolution of disputes is a

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**Reasoning:** The NCLAT considered the Terms of Settlement submitted by both parties, which indicated a

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**Interpretation:** The interpretation of the settlement agreement involved assessing whether it

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**Application:** The NCLAT applied the principle of upholding settlements by setting aside the

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** M/s BM Pipes…
- **Respondents:** M/s. Eta Engineeri…

## Timeline

- **2017-01-01 — Civil Suit…**: M/s. BM Pipes Private Limited instituted Civil Suit No. 376 of 2017 against M/s. ETA…
- **2019-01-29 — Impugned Ord…**: Date of the order that was…

## 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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