# In the matter of National Textile Corporation Ltd. Vs.
Hero Solar Energy Pvt. Ltd Company Appeal (AT) (Insolvency) No. 631 of 2022

> NCLAT judgment dated 2022-06-01. Citation: TCN-2022-NCLAT-00445. The appeal was filed against an order dated 2022-05-27 by the Adjudicating Authority, which…

- **Court:** NCLAT
- **Order date:** 1 Jun 2022
- **Citation:** TCN-2022-NCLAT-00445
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/national-textile-corporation-ltd-vs-hero-solar-energy-pvt-ltd-company-appeal-a43cd35a

## Summary

### Background

The appeal was filed against an order dated 2022-05-27 by the Adjudicating Authority, which admitted the application filed by the Respondent-Operational Creditor under Section 9 of the IBC. The Interim Resolution Professional (IRP) was represented through learned counsel.

## Facts

National Textile Corporation Ltd. filed an appeal against Hero Solar Energy Pvt. Ltd. The appeal was against the order of the Adjudicating Authority, which admitted the application filed by Hero Solar Energy Pvt. Ltd. under Section 9 of the IBC. During the proceedings, the parties informed the court that they had reached a settlement. The court allowed the appellant to file a Settlement Agreement and stayed the CIRP initiated by order dated 2022-05-27. The Settlement Agreement between the parties dated 2022-05-31 was placed on record. The Operational Creditor prayed that he may be permitted to withdraw the application. The court took the Settlement Agreement on record and permitted the withdrawal of the Section 9 application. The CIRP initiated by order dated

…

## Issues and analysis

### Issue 1: Whether the Settlement Agreement between …

**Ratio:** When parties have settled their disputes, the court can take the Settlement Agreement on

…

**Reasoning:** The parties informed the court that they had reached a settlement, and the Settlement

…

**Interpretation:** The court acknowledged the settlement between the parties and recognized the

…

**Application:** The court took the Settlement

…

## Parties

- **Judges:** Ashok Bh…; Naresh Sa…
- **Appellants:** National Textile…
- **Respondents:** Hero Solar Energy…

## Timeline

- **2022-05-27 — Order by Adjudicating…**: The Adjudicating Authority admitted the application filed by the Respondent-Operational…
- **2022-05-31 — Settlement Ag…**: The Settlement Agreement between…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/national-textile-corporation-ltd-vs-hero-solar-energy-pvt-ltd-company-appeal-a43cd35a