# In the matter of Asian Colour Coasted Ispat Limited (IB)-50(PB)/2018

> NCLT judgment dated 2021-02-02. Citation: TCN-2021-NCLT-03168. The case involves a settlement between the Applicant/Resolution Professional and the…

- **Court:** NCLT
- **Order date:** 2 Feb 2021
- **Citation:** TCN-2021-NCLT-03168
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/asian-colour-coasted-ispat-limited-ib-50pb2018-c70fff87

## Summary

### Background

The case involves a settlement between the Applicant/Resolution Professional and the Promoter-Director, Mr. Pradeep Aggarwal, regarding Kapoli land. The Resolution Applicant sought to record the terms of the settlement, where Mr. Aggarwal agreed to transfer the Kapoli land to the Resolution Applicant/Corporate Debtor. An application (CA613/2019) was filed, but due to the settlement, the reliefs sought in that application became infructuous.

## Facts

The State Bank of India initiated proceedings against Asian Colour Coated Ispat Limited under Section 7 of the Insolvency & Bankruptcy Code, 2016. A settlement was reached between the Resolution Professional and Mr. Pradeep Aggarwal, the Promoter-Director, concerning Kapoli land. Mr. Aggarwal agreed to transfer the Kapoli land to the Resolution Applicant/Corporate Debtor. The settlement was formalized on 2020-12-24. Several applications, including CA613/2019, IA-3372/2020, and IA-2398/2019, were filed in connection with the case. The CIRP period had already been completed. The Resolution Professional sought to record the settlement and withdraw certain applications.

## Issues and analysis

### Issue 1: Whether the settlement between the Applicant/Resolution Professional and the Promoter-Director, Mr. …

**Ratio:** A settlement reached between parties in a legal proceeding can be recorded by the

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**Reasoning:** The court reasoned that the settlement arrived at between the parties, where Mr. Pradeep

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**Interpretation:** The interpretation is that the adjudicating authority has the power to record

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**Application:** The court applied this principle by recording the settlement as Annexure A and

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## Parties

- **Judges:** SH. B.S.V.…; SH. NARENDER…
- **Appellants:** State Bank of…
- **Respondents:** ASIAN COLOUR…
- **Advocates:** Abhinav V…; Spandan B…; +10 more

## Timeline

- **2020-12-24 — Settlemen…**: Terms of settlement dated 24.12.2020 were entered into between the Resolution…
- **2021-02-02 — Order Del…**: Order delivered by the NCLT, New Delhi, Principal Bench, regarding the settlement and…

## 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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