# In the matter of Mehul Harish Gosar vs. Athena Constructions Limited

> NCLAT judgment dated 2025-05-16. Citation: TCN-2025-NCLAT-00031. This is a Company Appeal (AT) (Insolvency) No. 767 of 2025. The appellant's counsel submits…

- **Court:** NCLAT
- **Order date:** 16 May 2025
- **Citation:** TCN-2025-NCLAT-00031
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mehul-harish-gosar-vs-athena-constructions-limited-9696c809

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No. 767 of 2025. The appellant's counsel submits that before the order of 08.05.2025 admitting the Section 7 application, a memorandum of settlement was entered between the financial creditor and the corporate debtor on 07.02.2025. The corporate debtor is an LLP with 3 partners, 2 of whom have signed with 97%. The financial creditor insists the third partner, with another entity part of the LLP, must also sign, preventing the Settlement Agreement from being placed before the adjudicating authority.

## Facts

Mehul Harish Gosar is the appellant in this case against Athena Constructions Ltd. & Anr., the respondents. A Section 7 application was filed by the financial creditor. Prior to the order admitting the application on 08.05.2025, a memorandum of settlement was entered into between the financial creditor and the corporate debtor on 07.02.2025. The corporate debtor is an LLP with three partners. Two partners, representing 97% ownership, have signed the settlement. The financial creditor insists that the third partner, who has another entity that is part of the LLP, must also sign. The financial creditor has signed and accepted the terms of settlement where area of 2,500 sq. ft. of carpet area in the sale building was allotted and further in addition to the above, Rs.

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## Issues and analysis

### Issue 1: Whether the settlement agreement entered into between the financial creditor and the corporate …

**Ratio:** The enforceability of a settlement agreement depends on its compliance with contractual

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**Reasoning:** The court needs to determine if the settlement agreement meets the legal requirements for

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**Interpretation:** The interpretation of the settlement agreement will be crucial in determining

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**Application:** The ratio will be applied to the specific facts of the case, including the

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Mehul Haris…
- **Respondents:** Athena Constructio…

## Timeline

- **2025-02-07 — Settlement Ag…**: A memorandum of settlement was entered between the financial creditor and the corporate…
- **2025-05-08 — Order admitting Section…**: Order passed admitting the Section 7…

## 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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