# In the matter of Verinder Kumar Chhabra vs. D R International Pvt. Ltd. & Anr. Comp. App. (AT) (Ins.) No. 311 of 2022

> NCLAT judgment dated 2022-03-29. Citation: TCN-2022-NCLAT-00566. This is an appeal against the order dated 17.02.2022 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 29 Mar 2022
- **Citation:** TCN-2022-NCLAT-00566
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/verinder-kumar-chhabra-vs-d-r-international-pvt-ltd-anr-comp-app-5bbb43d3

## Summary

### Background

This is an appeal against the order dated 17.02.2022 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench- IV, which admitted an application filed under Section 9. The appellant submitted that a settlement had been entered with the respondent. The order initiating CIRP against the Corporate Debtor by order dated 17.02.2022 was set aside.

## Facts

An appeal was filed against the order dated 17.02.2022 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench- IV, which admitted an application filed under Section 9. The appellant submitted that a settlement had been entered with the respondent. The IRP came to know about the order on 21.03.2022 and issued publication on 23.03.2022. A Memorandum of Settlement was entered between the parties on 25.03.2022. The Tribunal granted a stay on 25.03.2022. The parties settled, and the court took the settlement dated 25.03.2022 on record. The order initiating CIRP against the Corporate Debtor by order dated 17.02.2022 was set aside. The IRP was directed to be paid expenses incurred for publication in pursuance of the order dated 17.02.2022.

## Issues and analysis

### Issue 1: Whether the order initiating CIRP against the Corporate Debtor should be set aside given the …

**Ratio:** When parties have settled their disputes, the court can set aside the order initiating

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**Reasoning:** The Tribunal considered the settlement brought on record by the parties and determined

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**Interpretation:** This reflects the principle that courts encourage settlements and will

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**Application:** The ratio was applied to the specific facts where the parties had entered into

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## Parties

- **Judges:** Ashok Bh…; Alok Sriv…; +1 more
- **Appellants:** Verinder Kumar…
- **Respondents:** D R International…

## Timeline

- **2022-02-17 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench- IV, passed…
- **2022-03-17 — Order Upl…**: The order dated…

## 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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