# in the matter of Parvinder Singh Vs. Intec Capital Ltd. & Anr. Company Appeal (AT) (Insolvency) No. 968 of 2019

> NCLAT judgment dated 2019-12-06. Citation: TCN-2019-NCLAT-00053. The case involves an appeal against the admission of a Section 7 application under the…

- **Court:** NCLAT
- **Order date:** 6 Dec 2019
- **Citation:** TCN-2019-NCLAT-00053
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/parvinder-singh-vs-intec-capital-ltd-anr-company-appeal-5fba119e

## Summary

### Background

The case involves an appeal against the admission of a Section 7 application under the Insolvency and Bankruptcy Code, 2016 (IBC) for the initiation of Corporate Insolvency Resolution Process (CIRP) against 'M/s Jagtar Singh and Sons Hydraulics Private Limited' (Corporate Debtor). The application was moved by 'M/s Intec Capital Ltd.' (Financial Creditor). The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench – III admitted the application on September 3, 2019. The appellant, Mr. Parvinder Singh, representing the promoter of the Corporate Debtor, filed an appeal against this order. During the appeal, the parties agreed to mediation, and the matter was referred to Justice A.K. Sikri, a former Judge of the Supreme Court. The mediation resulted in a

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## Facts

M/s Intec Capital Ltd. (Financial Creditor) extended a loan of Rs. 3.18 crores to M/s Jagtar Singh & Sons Hydraulics Pvt. Ltd. (Corporate Debtor) on March 28, 2013, with an interest rate of 13.75%. The loan was to be repaid in 60 monthly installments of Rs. 7.27 lakhs each, secured by post-dated cheques (PDCs). The Corporate Debtor paid approximately 38 installments, some with delays and penalties. The Corporate Debtor defaulted on subsequent payments, leading to the cheques being dishonored and the account becoming a Non-Performing Asset (NPA). To regularize the account, the Financial Creditor advanced another sum of Rs. 41,32,383 on May 31, 2016, at 13% interest, repayable in 36 installments of Rs. 1.57 lakhs each. The Corporate Debtor paid 34 installments of the

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## Issues and analysis

### Issue 1: Whether the appeal against the order admitting the Section 7 application under the Insolvency and …

**Ratio:** The ratio is based on the principle that settlements reached through mediation are

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**Reasoning:** The court reasoned that the parties had reached an amicable settlement through mediation,

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**Interpretation:** The interpretation involves recognizing the validity and enforceability of

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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…; Bansi Lal…; +1 more
- **Appellants:** Parvinder…
- **Respondents:** M/s Jagtar Singh…; Intec Capit…

## Timeline

- **2013-03-28 — Loan Agre…**: M/s Intec Capital Ltd. (Financial Creditor) extended a loan of Rs. 3.18 crores to M/s…
- **2016-05-31 — Additiona…**: The Financial Creditor advanced another sum of Rs. 41,32,383 at 13% interest to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 138 — Discharge order](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-138)

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