# In the matter of Auctus Town Planners Pvt. Ltd. CA 821-2020 in IB-1350-ND-2019

> NCLT judgment dated 2020-01-28. Citation: TCN-2020-NCLT-02164. CA No.821/2020 was filed in IB-1350/2019. The Operational Creditor filed the C.A. to withdraw…

- **Court:** NCLT
- **Order date:** 28 Jan 2020
- **Citation:** TCN-2020-NCLT-02164
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/auctus-town-planners-pvt-ltd-ca-821-2020-in-ib-1350-nd-2019-7befbb0f

## Summary

### Background

CA No.821/2020 was filed in IB-1350/2019. The Operational Creditor filed the C.A. to withdraw the same on the ground that the matter has been settled between the parties. An agreement was signed on January 24, 2020, and a payment of Rs.8,55,000/- was made, constituting a full and final settlement. The Resolution Professional submitted that the publication has not been made in the Newspapers but it is up-loaded on the IBBI Website. He further submitted that he has incurred the expenses which is agreed to be paid by the Corporate Debtor.

## Facts

Khandelwal Group (P) Ltd filed an application against Auctus Town Planner (P) Ltd under Section 9 of the IBC, 2016. The parties reached a settlement, signing an agreement on January 24, 2020, with a payment of Rs.8,55,000/- made as full and final settlement. The Resolution Professional submitted that the public announcement was not published in newspapers but was uploaded on the IBBI website. The Corporate Debtor agreed to pay the expenses incurred by the Resolution Professional. The court recalled its earlier order, lifted the moratorium, and dismissed the company petition as withdrawn.

## Issues and analysis

### Issue 1: Whether the settlement between the parties warrants the withdrawal of the Corporate Insolvency …

**Ratio:** When parties reach a settlement and the operational creditor seeks to withdraw the CIRP,

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**Reasoning:** The court reasoned that the matter had been settled between the parties, with an

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**Interpretation:** The interpretation is that settlements are encouraged in insolvency

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**Application:** In this case, the settlement between Khandelwal Group (P) Ltd and Auctus Town

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## Parties

- **Judges:** Ch. Mohd Sharief…; SMT SAROJ R…
- **Appellants:** Khandelwal Group…
- **Respondents:** Auctus Town…; Auctus Town…

## Timeline

- **2020-01-04 — Order Da…**: Order passed in…
- **2020-01-24 — Agreement…**: Agreement signed between…

## 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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