# In the matter of Darshan Gandhi Vs USV Pvt. Ltd.

> NCLAT judgment dated 2019-06-19. Citation: TCN-2019-NCLAT-00501. The case involves a Company Appeal (AT) (Insolvency) No. 644 of 2019 before the National…

- **Court:** NCLAT
- **Order date:** 19 Jun 2019
- **Citation:** TCN-2019-NCLAT-00501
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/darshan-gandhi-vs-usv-pvt-ltd-9b690262

## Summary

### Background

The case involves a Company Appeal (AT) (Insolvency) No. 644 of 2019 before the National Company Law Appellate Tribunal, New Delhi. The Appellant, Darshan Gandhi, Ex-Director of Lok Housing and Constructions Ltd., is seeking to settle a matter with the Respondent, USV Pvt. Ltd. (Financial Creditor), regarding the payment of a decree amount.

## Facts

Darshan Gandhi, Ex-Director of Lok Housing and Constructions Ltd., filed a Company Appeal (AT) (Insolvency) No. 644 of 2019 against USV Pvt. Ltd. The Appellant proposed to settle the matter by paying the principal amount of Rs.52,07,403/- to the Respondent, USV Pvt. Ltd. (Financial Creditor). The initial offer involved paying the principal by June 30th, 2019, and interest by the 15th of each month until March 15th, 2020. The Appellant later sought to extend the payment period by one month, proposing to pay the principal by July 31st, 2019, and interest thereafter. The Respondent was given time to respond to the proposal. The Resolution Professional was directed not to constitute the Committee of Creditors, and the Corporate Debtor's bank accounts were permitted to

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## Issues and analysis

### Issue 1: Whether the Appellant's …

**Ratio:** The court has the discretion to encourage settlement between parties but cannot force a

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**Reasoning:** The court acknowledged the Appellant's offer to settle but stated that the decision to

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**Interpretation:** This reflects the principle that while courts encourage amicable resolutions,

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**Application:** The court allowed the Respondent time to consider the Appellant's proposal,

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** DARSHAN G…
- **Respondents:** Lok Housing and…; USV Pvt.…

## Timeline

- **2019-06-19 — Order Da…**: Learned counsel for the Appellant submits that the Appellant is ready to settle the…
- **2019-06-30 — Proposed Paym…**: As per the offer given by the Respondent the Principal Amount of Rs.52,07,403/- is to be…

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