# In the matter of Priyal Kantilal Patel vs. Creative Plastics Ltd. & Ors.

> NCLAT judgment dated 2024-04-03. Citation: TCN-2024-NCLAT-00544. The case involves an appeal against an order dated 27.02.2024 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 3 Apr 2024
- **Citation:** TCN-2024-NCLAT-00544
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/priyal-kantilal-patel-vs-creative-plastics-ltd-ors-dfdbf063

## Summary

### Background

The case involves an appeal against an order dated 27.02.2024 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Court II) in CP (IB) 490 (IB) 2023, which admitted a Section 7 application filed by Creative Plastics Ltd./the Financial Creditor. The Appellant submitted that the parties have entered into a settlement, and the process of signing the settlement is underway.

## Facts

Creative Plastics Ltd. initiated CIRP against a Corporate Debtor by filing a Section 7 application, which was admitted by the NCLT. Priyal Kantilal Patel filed an appeal against this order. During the appeal, the parties informed the court that they had reached a settlement. Yes Bank, another financial creditor with 90% voting shares, also agreed to the closure of the CIRP. Both Creative Plastics and Yes Bank filed affidavits consenting to the settlement. The IRP confirmed that these were the only two financial creditors. The appellant is required to pay Rs. 1,28,000 to the IRP.

## Issues and analysis

### Issue 1: Whether the appeal against the order admitting the Section 7 application should be disposed of …

**Ratio:** When parties involved in a legal dispute reach a settlement and express their consent to

…

**Reasoning:** The court considered the submissions of the parties, including the Appellant and the

…

**Interpretation:** This legal principle allows courts to recognize and enforce settlements reached

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**Application:** In this case, the court applied the principle by accepting the consent terms

…

## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Priyal Kantilal…
- **Respondents:** Creative Plastics…; Creative Plastics…
- **Advocates:** Arun Kath…; Samrath Cho…; +10 more

## Timeline

- **2024-02-27 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) passed an order…
- **2024-03-22 — Interim…**: An interim order was passed noting that the parties had entered into settlement…

## 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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