# In the matter of Action Ispat and Power Pvt. Ltd. (IB)-503(ND)2017

> NCLT judgment dated 2018-12-05. Citation: TCN-2018-NCLT-00180. The case involves Desein Pvt. Ltd. versus Action Ispat and Power Pvt. Ltd. The Corporate Debtor…

- **Court:** NCLT
- **Order date:** 5 Dec 2018
- **Citation:** TCN-2018-NCLT-00180
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/action-ispat-and-power-pvt-ltd-ib-503nd2017-259bba26

## Summary

### Background

The case involves Desein Pvt. Ltd. versus Action Ispat and Power Pvt. Ltd. The Corporate Debtor pointed out that a liquidation order had already been passed by the High Court of Delhi in C.P.731/2016. The applicant was advised to approach the Official Liquidator for redressal of their claim.

## Facts

Desein Pvt. Ltd. filed a case against Action Ispat and Power Pvt. Ltd. The Corporate Debtor informed the court that a liquidation order had already been passed by the High Court of Delhi in C.P.731/2016. The Operational Creditor's counsel pressed an application for contempt proceedings against the Corporate Debtor, citing the retraction of a compromise between the parties as the basis for the application. The court noted that the compromise could be enforced through execution proceedings, but no undertaking was given to the court. Therefore, the court did not issue a notice to the Corporate Debtor and dismissed the application.

## Issues and analysis

### Issue 1: Whether the application for contempt proceedings against the Corporate Debtor is maintainable given …

**Ratio:** Contempt proceedings are not maintainable if there is no undertaking given to the court,

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**Reasoning:** The court reasoned that since the compromise between the parties could be enforced

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**Interpretation:** The interpretation is that an undertaking to the court is a prerequisite for

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**Application:** In this case, since no undertaking was given to the court regarding the

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## Parties

- **Judges:** DeepaKr…; Ina Mal…
- **Appellants:** Desein Pvt…
- **Respondents:** Action Ispat and…

## Timeline

- **2016-01-01 — Liquidation…**: The High Court of Delhi passed a…
- **2018-12-04 — Hearing…**: Hearing before the New Delhi Bench of…

## 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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