# In the matter of Katha-O-Kahini (Book Sellers) Pvt. Ltd. vs. Shushila Jain

> NCLAT judgment dated 2024-09-11. Citation: TCN-2024-NCLAT-00197. The case involves an application (I.A. No. 6236 of 2024) filed by the Applicant, who is the…

- **Court:** NCLAT
- **Order date:** 11 Sept 2024
- **Citation:** TCN-2024-NCLAT-00197
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/katha-o-kahini-book-sellers-pvt-ltd-vs-shushila-jain-091dd7a0

## Summary

### Background

The case involves an application (I.A. No. 6236 of 2024) filed by the Applicant, who is the Respondent in the main appeal and also the Operational Creditor. The appeal was initially filed against an order by the Adjudicating Authority admitting a Section 9 application under the IBC. An interim order was passed by the NCLAT on 2024-01-24. Subsequently, IA No. 2442 of 2024 was filed, bringing on record settled Consent Terms dated 2024-04-04. Based on these Consent Terms, the appeal was disposed of on 2024-04-09. The current application seeks recall of the disposal order, restoration of the appeal, and payment of Rs.2,98,96,518/- as per the Consent Terms.

## Facts

Katha-O-Kahini (Book Sellers) Pvt. Ltd. filed an appeal against an order admitting a Section 9 application. An interim order was passed on 2024-01-24. Consent Terms were agreed upon and filed as IA No.2442 of 2024, dated 2024-04-04, leading to the disposal of the appeal on 2024-04-09. The Operational Creditor (Shushila Jain) filed an application (I.A. No. 6236 of 2024) seeking recall of the disposal order, restoration of the appeal, and payment of Rs.2,98,96,518/-. The Appellant argued that Annexure A to the Consent Terms was not signed by the Operational Creditor. The Consent Terms were supported by Affidavits from both parties. The clauses of the Consent Terms were not being disputed. The Appellant had accepted money under the settlement.

## Issues and analysis

### Issue 1: Whether the application for recall of the order disposing of the appeal based on consent terms is …

**Ratio:** A party cannot riggle out from Consent Terms on the basis of which an Appeal was disposed

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**Reasoning:** The court found that the application was an attempt to evade the settlement agreed upon

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**Interpretation:** This reinforces the principle that consent decrees are binding and parties are

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**Application:** The court applied this principle to the facts by rejecting the application for

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Katha-O-Kahini…
- **Respondents:** Shushila…

## Timeline

- **2024-01-24 — Interim…**: Interim order was…
- **2024-04-04 — Consent…**: Settled Consent Terms…

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