# In the matter of Mr. Ramamurthy Natarajan & Anr. Vs. Prayag Polytech Pvt. Ltd. & Anr. CA(AT)(Ins)No. 1088-2019

> NCLAT judgment dated 2019-10-18. Citation: TCN-2019-NCLAT-00206. The appeal was filed against the admission of an application under Section 7 of the…

- **Court:** NCLAT
- **Order date:** 18 Oct 2019
- **Citation:** TCN-2019-NCLAT-00206
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-ramamurthy-natarajan-anr-vs-prayag-polytech-pvt-ltd-anr-ca-1fbe760b

## Summary

### Background

The appeal was filed against the admission of an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) against the Corporate Debtor. The parties informed the court that they had settled the matter, and a settlement agreement dated 5th October 2019 was enclosed.

## Facts

An application under Section 7 of the Insolvency and Bankruptcy Code (IBC) was admitted against a Corporate Debtor. The Director/Shareholders preferred an appeal. The parties reached a settlement, and a settlement agreement dated 5th October 2019 was submitted. The Committee of Creditors had not been constituted. The Adjudicating Authority had passed orders appointing an Interim Resolution Professional and declaring a moratorium. The 1st Respondent had preferred the application under Section 7 of the I&B Code. The Corporate Debtor, 'Great Aid Technical Services Pvt. Ltd.', was released from all rigour of law and allowed to function independently. The Appellant was directed to pay the fee of the Interim Resolution Professional and costs.

## Issues and analysis

### Issue 1: Whether the settlement between the parties warrants setting aside the impugned order passed by the …

**Ratio:** The principle of upholding settlements between parties to promote amicable resolution of

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**Reasoning:** The court reasoned that the parties had settled the matter, and the settlement agreement

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**Interpretation:** The interpretation of Rule 11 of the NCLAT Rules, 2016, allows the court to

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Ramamurthy…
- **Respondents:** Great Aid…; Prayag Polytech…
- **Advocates:** Ayush Cho…; Vipul G…; +2 more

## Timeline

- **2019-10-18 — Order Da…**: An application u/s 7of the ‘I&B'Code has been…
- **2019-10-05 — Settlement Agreement…**: Parties settled the matter and settlement agreement dated 5th October, 2019 has been…

## 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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