# In the matter of Babcock Borsig Ltd. C.P. (IB)-737(KB)2020

> NCLT judgment dated 2021-04-07. Citation: TCN-2021-NCLT-02450. The case involves an application under the Insolvency and Bankruptcy Code (IBC). The Financial…

- **Court:** NCLT
- **Order date:** 7 Apr 2021
- **Citation:** TCN-2021-NCLT-02450
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/babcock-borsig-ltd-cp-ib-737kb2020-8e424a44

## Summary

### Background

The case involves an application under the Insolvency and Bankruptcy Code (IBC). The Financial Creditor had filed an application, CP(IB)/737(KB)/2020, against the Corporate Debtor. The matter was listed for hearing on April 7, 2021. During the hearing, the Counsel for the Financial Creditor submitted that the matter has been settled in terms of a Settlement Agreement dated April 6, 2021.

## Facts

The Financial Creditor, represented by Mr. Shaunak Mitra and Mr. Sayantak Das, Advocates, filed an application CP(IB)/737(KB)/2020 against the Corporate Debtor, Babcock Borsig Ltd., represented by Mr. Rishav Banerjee, Mr. Ritoban Sarkar, and Miss Madhuja Burman, Advocates. During the hearing on April 7, 2021, the Financial Creditor's counsel submitted that the matter had been settled via a Settlement Agreement dated April 6, 2021. This settlement led to the Financial Creditor seeking to withdraw the application. The court considered this submission and the settlement agreement.

## Issues and analysis

### Issue 1: Whether the application CP(IB)/737(KB)/2020 should be dismissed as withdrawn given the settlement …

**Ratio:** When parties to a legal proceeding reach a settlement, the court may dismiss the

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**Reasoning:** The court reasoned that since the Financial Creditor submitted that the matter had been

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**Interpretation:** This issue involves the interpretation of the court's power to dismiss

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**Application:** In this specific case, the Financial Creditor's submission of a settlement

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** GANGADHAR HIGHTS…
- **Respondents:** BABCOCK BORSIG…

## Timeline

- **2021-04-06 — Settlement Ag…**: The Financial Creditor and Corporate Debtor…
- **2021-04-07 — Hearing…**: The matter was heard by the NCLT Kolkata Bench. The Financial Creditor's counsel…

## 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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