# In the matter of ASP Sealing Products Limited CP No. (IB)-1384(ND)-2019

> NCLT judgment dated 2020-02-20. Citation: TCN-2020-NCLT-01876. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code…

- **Court:** NCLT
- **Order date:** 20 Feb 2020
- **Citation:** TCN-2020-NCLT-01876
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/asp-sealing-products-limited-cp-no-ib-1384nd-2019-7ceb6145

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code (IBC) by the financial creditor, Amrish Gupta, against the corporate debtor, M/s ASP Sealings Products Limited. The application was initially admitted, and the Corporate Insolvency Resolution Process (CIRP) was initiated. Subsequently, an appeal was filed before the NCLAT, which was later withdrawn after a settlement agreement was reached between the parties. The current application pertains to recording the settlement and recalling the initial order.

## Facts

Amrish Gupta, a financial creditor, filed an application under Section 7 of the IBC against M/s ASP Sealings Products Limited, the corporate debtor. The application was initially admitted, leading to the commencement of the CIRP. An appeal was filed before the NCLAT against the order admitting the application, but it was later withdrawn after a settlement agreement was reached between the parties on 17.02.2020. The settlement involved the corporate debtor paying Rs. 25.00 lakhs, with the remaining amount to be paid through post-dated cheques. The Resolution Professional made a public announcement on 15.02.2020, with the last date for filing claims being 26.02.2020. The CoC had not been constituted. The Resolution Professional incurred expenses of Rs. 1,50,000 for the

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## Issues and analysis

### Issue 1: Whether the application to record the settlement and recall the order initiating the CIRP should be …

**Ratio:** Section 12A of the IBC and Regulation 30A of the CIRP Regulations allow for the

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**Reasoning:** The court considered the settlement agreement reached between the parties and the fact

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**Interpretation:** Section 12A and Regulation 30A provide a mechanism for parties to settle their

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**Application:** The court applied the ratio to the facts of the case, noting the settlement

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## Parties

- **Judges:** CH. MOHD SHARIEF…; SMT SUMITA…
- **Respondents:** M/ASP Sealings…

## Timeline

- **2020-02-12 — Initial…**: An order was passed admitting the application filed under Section 7 by the Financial…
- **2020-02-17 — Settlement Ag…**: The parties executed a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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