# In the matter of Santu Karar vs. Rajendra Kumar Agarwal & Anr.

> NCLAT judgment dated 2024-02-08. Citation: TCN-2024-NCLAT-00648. The appeal was filed against the order dated 04.01.2024 by which the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 8 Feb 2024
- **Citation:** TCN-2024-NCLAT-00648
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/santu-karar-vs-rajendra-kumar-agarwal-anr-d9ac05e3

## Summary

### Background

The appeal was filed against the order dated 04.01.2024 by which the Adjudicating Authority admitted Section 9 Application. An I.A. No.932 of 2024 was filed bringing on record a settlement between the parties dated 01.02.2024.

## Facts

The appeal was filed against the order dated 04.01.2024 by which the Adjudicating Authority admitted Section 9 Application. A settlement was reached between the parties on 01.02.2024. The Respondent/Operational Creditor's counsel submitted that the settlement was agreed upon and payments were made. The Appellant's counsel stated that all payments were made except for Rs.20 lakhs, for which post-dated cheques were issued. The Operational Creditor paid Rs.2 lakhs as the RP fee. The court accepted the settlement, closed the CIRP, set aside the order dated 04.01.2024, and freed the Corporate Debtor from insolvency.

## Issues and analysis

### Issue 1: Whether the settlement between the parties …

**Ratio:** A settlement between parties in a CIRP can be accepted if it is deemed just and

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**Reasoning:** The court considered the submissions of both parties, noting that a settlement had been

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**Interpretation:** This implies that the court has the discretion to accept settlements reached

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**Application:** The court applied this principle by accepting the settlement, closing the CIRP,

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Santu K…
- **Respondents:** Rajendra Kumar…
- **Advocates:** Krishnendu…; Rajesh…; +6 more

## Timeline

- **2024-01-04 — Order by Adjudicating…**: Adjudicating Authority…
- **2024-02-01 — Settlement Between…**: Settlement reached…

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