# In the matter of Datta Balbhim Shinde vs. Mohandas Chattaram & Anr.  I.A No. 618 of 2022 in Comp. App. (AT) (Ins.) No. 224 of 2022

> NCLAT judgment dated 2022-03-04. Citation: TCN-2022-NCLAT-00601. The case involves an appeal against the initiation of the Corporate Insolvency Resolution…

- **Court:** NCLAT
- **Order date:** 4 Mar 2022
- **Citation:** TCN-2022-NCLAT-00601
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/datta-balbhim-shinde-vs-mohandas-chattaram-anr-ia-no-618-of-2022-in-comp-app-a1968e38

## Summary

### Background

The case involves an appeal against the initiation of the Corporate Insolvency Resolution Process (CIRP). The Appellant filed I.A No. 618 of 2022 to bring on record the Terms of Settlement between the Financial Creditor and the Corporate Debtor. The CIRP was initiated by an order dated 18.02.2022 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, on an Application filed by the Financial Creditor, who is the Respondent in this appeal.

## Facts

The Appellant, Datta Balbhim Shinde, filed an application (I.A No. 618 of 2022) to record the Terms of Settlement with the Respondent, Mohandas Chattaram & Anr., who is the Financial Creditor. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor by an order dated 18.02.2022 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench. The parties have now settled the matter before the constitution of the Committee of Creditors (CoC). The Interim Resolution Professional (IRP) is also present and does not dispute that the CoC has not yet been constituted. The Appellant is required to pay the professional fees of Rs. 1.5 lakh plus expenses of the IRP.

## Issues and analysis

### Issue 1: Whether the settlement reached between the Appellant and the Respondent before the constitution of …

**Ratio:** When parties settle a matter before the constitution of the CoC, the settlement can be

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**Reasoning:** The court reasoned that since the parties have settled before the CoC was formed,

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**Interpretation:** This implies that settlements are favored, especially when they occur early in

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**Application:** The court applied this principle by accepting the settlement between Datta

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## Parties

- **Judges:** Ashok Bh…; Alok Sriv…
- **Appellants:** Datta Balbhim…
- **Respondents:** Mohandas Ch…

## Timeline

- **2022-02-18 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) initiated by order of the Adjudicating…
- **2022-03-04 — Application for…**: Appellant filed I.A No. 618 of 2022 to bring on record the Terms of Settlement between…

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