# In the matter of Rahul Gupta Vs. G Trans Logistics (india) Pvt. Ltd. & Ors. CA(AT)(Ins)No. 537 of 2020

> NCLAT judgment dated 2020-06-11. Citation: TCN-2020-NCLAT-00228. This is a Company Appeal (AT) (Insolvency) No. 537 of 2020 before the National Company Law…

- **Court:** NCLAT
- **Order date:** 11 Jun 2020
- **Citation:** TCN-2020-NCLAT-00228
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rahul-gupta-vs-g-trans-logistics-5dc5ae7a

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No. 537 of 2020 before the National Company Law Appellate Tribunal, New Delhi. The appeal was filed by the Appellant, a Director and Shareholder of the Corporate Debtor, seeking to record the Terms of Settlement Agreement executed between the Appellant and the Respondent, who is the Operational Creditor. The Operational Creditor had initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor under Section 9 of the Insolvency and Bankruptcy Code (IBC).

## Facts

Rahul Gupta, the Appellant, is a Director and Shareholder of the Corporate Debtor. G Trans Logistics (India) Pvt. Ltd., the Respondent, is the Operational Creditor. The Operational Creditor initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor under Section 9 of the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority admitted the application under Section 9, leading to the commencement of CIRP. Subsequently, the Appellant and the Respondent entered into a Settlement Agreement, where the Corporate Debtor agreed to pay Rs.85.00 Lakh to the Operational Creditor as full and final settlement of all claims. The Interim Resolution Professional (IRP) had issued a public announcement, but the Committee of Creditors (CoC) had not been

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## Issues and analysis

### Issue 1: Whether the settlement agreement between the Appellant (Corporate Debtor) and the Respondent …

**Ratio:** The exit route from the Corporate Insolvency Resolution Process is available prior to the

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**Reasoning:** The court relied on the Supreme Court's dictum in 'Swiss Ribbons' case, which allows for

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**Interpretation:** The interpretation of the 'Swiss Ribbons' judgment allows for the termination

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**Application:** The court applied the ratio of 'Swiss Ribbons' to the present case, where a

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## Parties

- **Judges:** Bansi Lal…; Anant Bijay…; +1 more
- **Appellants:** Rahul G…
- **Respondents:** G Trans Logistics…

## Timeline

- **2020-06-02 — Impugned…**: The Adjudicating Authority admitted the application under Section 9 preferred by…
- **2020-06-11 — Order Da…**: The NCLAT took the Settlement terms on record and disposed of the appeal, setting aside…

## 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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