# Loknath Prasad Gupta vs. Dinesh Chand & Ors.

> NCLAT judgment dated 2026-07-28. Citation: TCN-2026-NCLAT-00250. An appeal is before the National Company Law Appellate Tribunal (NCLAT) where the parties,…

- **Court:** NCLAT
- **Order date:** 28 Jul 2026
- **Citation:** TCN-2026-NCLAT-00250
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/loknath-prasad-gupta-vs-dinesh-chand-ors-tjk88

## Summary

### Background

An appeal is before the National Company Law Appellate Tribunal (NCLAT) where the parties, Loknath Prasad Gupta (Appellant) and Dinesh Chand & Ors. (Respondents), have informed the Tribunal that they are in the process of reaching a settlement.

## Facts

The Learned Counsel for the Appellant and Respondent Nos. 1, 2, and 3 submitted that the parties are in the process of entering into a settlement.

Rs. 2.25 crore has already been given to Respondent Nos. 1, 2, and 3 by the Appellant.

A Demand Draft of Rs. 93 lacs has been prepared in favour of Respondent Nos. 1, 2, and 3.

The settlement terms are to be reduced into writing within the next four days.

The settlement, along with a joint affidavit, is to be submitted before the Appellate Tribunal within 3-4 days.

The appeal is listed for further hearing on August 3, 2026.

## Issues and analysis

### Issue 1: Whether the parties should be granted time to formalize and submit their settlement agreement to …

**Ratio:** The Tribunal, in its discretion, permits parties to record and submit settlements to

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**Reasoning:** The parties have mutually submitted that they are actively engaged in a settlement

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**Interpretation:** The Tribunal's decision reflects a pragmatic approach, encouraging out-of-court

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**Application:** The Tribunal applied its inherent powers to facilitate settlement by granting a

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## Parties

- **Judges:** Mohammad Faiz…; Naresh Sa…
- **Appellants:** Loknath Prasad…
- **Respondents:** Raja Udyog…; Dinesh…
- **Other parties:** IRP…
- **Advocates:** Joy S…; Patita Paban…; +3 more

## Timeline

- **2026-07-28 — Order Is…**: The NCLAT issued an order noting that parties are in the process of settlement, have…
- **2026-08-03 — Next Hearin…**: The appeal is listed for further…

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