# In the matter of Neeraj Chaudhary vs. Fontal Flexipack Ltd. & Anr. I.A. No. 2772 of 2021 in Company Appeal (AT) (Ins.) No. 1044 of 2021

> NCLAT judgment dated 2022-12-20. Citation: TCN-2022-NCLAT-00016. This is an appeal against the order dated 13.10.2021, by which an application filed under…

- **Court:** NCLAT
- **Order date:** 20 Dec 2022
- **Citation:** TCN-2022-NCLAT-00016
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/neeraj-chaudhary-vs-fontal-flexipack-ltd-anr-ia-no-2772-of-2021-in-company-appea-7f706e13

## Summary

### Background

This is an appeal against the order dated 13.10.2021, by which an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 was admitted. The application was filed by Fontal Flexipack Ltd. (Operational Creditor) against Adityasamraj Natural Foods Pvt. Ltd. (Corporate Debtor) for a debt of Rs. 4,17,878/-. The suspended director of the Corporate Debtor has come in appeal. The matter was listed for the first time on 15.12.2021, and notice was issued to the Respondents. The Adjudicating Authority's order dated 13.10.2021 was stayed, and the parties were given an opportunity to enter into settlement.

## Facts

Fontal Flexipack Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Adityasamraj Natural Foods Pvt. Ltd. (Corporate Debtor) for a debt of Rs. 4,17,878/-. The Adjudicating Authority admitted the application on 13.10.2021, and Sunil Kumar Gupta was appointed as Interim Resolution Professional (IRP). The suspended director of the Corporate Debtor appealed the order. During the appeal, the parties explored settlement. The Appellant agreed to pay Rs. 5,64,055/- (principal and interest) to the Respondent and Rs. 75,000/- to the IRP. The Respondent accepted the settlement amount. The court allowed the appeal and set aside the Adjudicating Authority's order, subject to the Appellant making the agreed payments.

## Issues and analysis

### Issue 1: Whether the appeal against the order dated 13.10.2021 admitting the application under Section 9 of …

**Ratio:** When parties resolve a dispute and agree to a settlement, the court can set aside the

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**Reasoning:** The court noted that the parties had resolved their dispute and agreed to settle it. The

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**Interpretation:** This case reinforces the principle that courts encourage settlement of

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**Application:** In this case, the Appellant and Respondent reached a settlement where the

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## Parties

- **Judges:** Rakesh Kuma…; KanthiNar…
- **Appellants:** Neeraj Cha…
- **Respondents:** Adityasamraj…; Fontal Flexipack…

## Timeline

- **2021-10-13 — Order Da…**: Order passed by Adjudicating Authority…
- **2021-12-15 — First Li…**: Matter listed for the first time;…

## 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)

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