# In the matter of Virat Sevantilal Shah vs. Jaldhi Overseas Pvt. Ltd. & Anr.

> NCLAT judgment dated 2024-02-05. Citation: TCN-2024-NCLAT-00653. The case involves an appeal against an order dated 2024-01-24, where a Section 9 application…

- **Court:** NCLAT
- **Order date:** 5 Feb 2024
- **Citation:** TCN-2024-NCLAT-00653
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/virat-sevantilal-shah-vs-jaldhi-overseas-pvt-ltd-anr-1ee7b5a9

## Summary

### Background

The case involves an appeal against an order dated 2024-01-24, where a Section 9 application filed by the Operational Creditor was admitted. The parties have since reached a settlement agreement.

## Facts

An appeal was filed against an order dated 2024-01-24, which admitted a Section 9 application filed by the Operational Creditor. Subsequently, the parties entered into a settlement agreement dated 2024-02-02. The Operational Creditor's counsel confirmed the settlement. The court, finding no reason to continue the CIRP process due to the settlement, set aside the order dated 2024-01-24. The appellant was directed to pay Rs. 1 Lakh to the IRP, along with expenses, within two weeks.

## Issues and analysis

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

**Ratio:** When parties have settled the operational debt, there is no reason to continue the CIRP

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**Reasoning:** The court reasoned that since the parties had settled the operational debt, continuing

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**Interpretation:** The interpretation is that a settlement between parties in a CIRP proceeding

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**Application:** In this case, the court applied the ratio by setting aside the impugned order

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## Parties

- **Judges:** Ashok Bh…; Arun Ba…
- **Appellants:** Virat Sevantilal…
- **Respondents:** Jaldhi Overseas…
- **Advocates:** Hemant…; Gaurav H.…; +6 more

## Timeline

- **2024-01-24 — Order Da…**: Order passed admitting Section 9…
- **2024-02-02 — Settlement Ag…**: Settlement agreement entered…

## 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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