# In the matter of Alchemist Township India Ltd. (IB)-1082(PB)-2018

> NCLT judgment dated 2020-10-01. Citation: TCN-2020-NCLT-00481. The case involves an application filed for the revival of a Corporate Insolvency Resolution…

- **Court:** NCLT
- **Order date:** 1 Oct 2020
- **Citation:** TCN-2020-NCLT-00481
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alchemist-township-india-ltd-ib-1082pb-2018-a9179cb8

## Summary

### Background

The case involves an application filed for the revival of a Corporate Insolvency Resolution Process (CIRP) that was initially triggered under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP, identified as CP (IB)-1082(PB)/2018, was based on an order dated 01.03.2019 passed by the Hon'ble Appellate Tribunal. Shareholders of the corporate debtor had filed an appeal against the admission order dated 25.01.2019 before the Appellate Tribunal. The promoters/shareholders of the corporate debtor had given cheques to the applicant/financial creditor towards settlement of the claim. The Appellate Authority recorded the settlement. The settlement was subject to the condition that if the cheques bounced, the applicant would be at liberty to revive the company

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## Facts

Kiran Malhotra filed an application/petition against Alchemist Township India Ltd. The application was for the revival of CP (IB)-1082(PB)/2018, which was initially triggered under Section 7 of the Insolvency and Bankruptcy Code, 2016. The basis for the revival was the failure of a settlement agreement reached before the Appellate Tribunal. The shareholders of Alchemist Township India Ltd. had filed an appeal against the admission order dated 25.01.2019. The promoters/shareholders had given cheques to Kiran Malhotra towards settlement of the claim, which were subsequently bounced. The applicant/financial creditor stated that the earlier IRP is reluctant to continue. The Appellate Authority had recorded the settlement arrived at.

## Issues and analysis

### Issue 1: Whether the application for revival of the Corporate Insolvency Resolution Process (CIRP) should be …

**Ratio:** When a settlement agreement fails due to dishonored payments, the applicant is at liberty

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**Reasoning:** The court reasoned that the failure of the settlement agreement, specifically the

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**Interpretation:** This interprets the right to revive the CIRP as a remedy available to the

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**Application:** In this case, the cheques given by the promoters of Alchemist Township India

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## Parties

- **Judges:** B.S.V. Prakash…; Sh. Hemant Kumar…
- **Appellants:** Kiran Mal…
- **Respondents:** Alchemist…

## Timeline

- **2019-01-25 — Admission…**: Admission order passed by the Appellate Tribunal, against which shareholders of the…
- **2019-03-01 — Order by Appellate…**: Order passed by the Hon'ble Appellate Tribunal, forming the basis for the revival…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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