# In the matter of Rahul Goel vs. Yug International Pvt. Ltd. & Anr.Company Appeal (AT) (Insolvency) No. 571 of 2023

> NCLAT judgment dated 2023-05-08. Citation: TCN-2023-NCLAT-00548. The case involves an appeal against an order passed by the Adjudicating Authority, which…

- **Court:** NCLAT
- **Order date:** 8 May 2023
- **Citation:** TCN-2023-NCLAT-00548
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rahul-goel-vs-yug-international-pvt-ltd-anrcompany-appeal-1423e39e

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority, which admitted a Section 9 application under the I&B Code, 2016. The Corporate Debtor and Operational Creditor settled their disputes after the order was passed, executing a Memorandum of Understanding (MoU).

## Facts

The Adjudicating Authority admitted a Section 9 application under the I&B Code, 2016. Subsequently, the Corporate Debtor and Operational Creditor settled their disputes and executed a Memorandum of Understanding (MoU) on April 29, 2023, involving a total amount of Rs. 28,80,651/-. The IRP incurred expenses of Rs. 1,05,807/-. The settlement agreement stipulated that parties would perform their part of the MoU. The Appellant filed an appeal against the order passed by the Adjudicating Authority. The relevance of the settlement is that it led to the disposal of the appeal.

## Issues and analysis

### Issue 1: Whether the appeal should be disposed of in light of the settlement agreement between the Corporate …

**Ratio:** When parties to a dispute reach a settlement, courts generally encourage and recognize

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**Reasoning:** The court acknowledged the settlement agreement reached between the Corporate Debtor and

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**Interpretation:** The interpretation is that a valid settlement agreement can form the basis for

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**Application:** The court applied this principle by taking the settlement agreement on record

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Rahul…
- **Respondents:** Yug International…

## Timeline

- **2023-04-26 — Order by Adjudicating…**: The Adjudicating Authority passed an order admitting Section 9 Application of I&B Code,…
- **2023-04-29 — Execution…**: Corporate Debtor and Operational Creditor executed a Memorandum of Understanding (MoU) to…

## 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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