# In the matter of Inteco Melting and Casting Technologies vs. Inteco Special Melting (India) Tecnologies Pvt. Ltd. & Others

> NCLAT judgment dated 2024-07-05. Citation: TCN-2024-NCLAT-00341. This appeal was directed against the order dated 20.05.2022, by which an application filed…

- **Court:** NCLAT
- **Order date:** 5 Jul 2024
- **Citation:** TCN-2024-NCLAT-00341
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/inteco-melting-and-casting-technologies-vs-inteco-special-melting-703160da

## Summary

### Background

This appeal was directed against the order dated 20.05.2022, by which an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC) by Respondent No. 2 and 3 against Respondent No. 1 for the resolution of their debt was admitted. The Corporate Debtor was sent to Insolvency on an Application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 of the debt of Rs.29,36,840/-. The Corporate Insolvency Resolution Process was initiated by Ex-Director of the Corporate Debtor.

## Facts

Inteco Melting and Casting Technologies GMBH (Appellant) filed an appeal against an order dated 20.05.2022, which admitted an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) filed by Inteco Special Melting Technologies (India) Pvt. Ltd. & Ors (Respondents) against the Corporate Debtor. The Appellant claimed the amount to be paid was Rs. 19,36,840/-, while the Respondents alleged it to be Rs. 29,36,840/-. The Appellant deposited Rs. 29,36,840/-. The matter was settled at Rs. 25 Lac with Respondent No. 2 and 3. The Appellant sought the return of the deposited amount to facilitate the payment of the settled amount. The Corporate Insolvency Resolution Process was initiated by Ex-Director of the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether the impugned order admitting the application under Section 7 of the IBC should be set aside …

**Ratio:** When parties reach a settlement, the court can set aside the impugned order to facilitate

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**Reasoning:** The court considered the settlement reached between the Appellant and the Respondents,

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**Interpretation:** This reflects the court's willingness to encourage settlements and resolve

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**Application:** The court applied the principle of facilitating settlements by setting aside

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Inteco Melting…
- **Respondents:** Inteco Special…
- **Advocates:** K. Da…; Parul Ka…; +6 more

## Timeline

- **2022-05-20 — Original…**: An application filed under Section 7 of the Code by Respondent No. 2 and 3 against…
- **2022-05-26 — Preliminary…**: The Court passed an order noting the Appellant's submission that the Corporate Debtor has…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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