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

> NCLT judgment dated 2021-04-07. Citation: TCN-2021-NCLT-02448. 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-02448
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/babcock-borsig-ltd-cp-ib-737kb2020-ef0f97d5

## Summary

### Background

The case involves an application under the Insolvency and Bankruptcy Code (IBC). The Financial Creditor and Corporate Debtor have reached a settlement. 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, and the Corporate Debtor, represented by Mr. Rishav Banerjee, Mr. Ritoban Sarkar, and Miss Madhuja Burman, reached a settlement agreement dated April 6, 2021. The Financial Creditor submitted to the court that the matter had been settled. Consequently, the Financial Creditor sought to withdraw the insolvency application CP(IB)/737(KB)/2020. The court considered the submission and dismissed the application as withdrawn, granting liberty to the Financial Creditor to revive the application if the settlement fails. The case was heard on April 7, 2021.

## Issues and analysis

### Issue 1: Whether the insolvency application CP(IB)/737(KB)/2020 should be dismissed as withdrawn due to a …

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

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**Reasoning:** The court accepted the submission of the Financial Creditor's counsel that the matter had

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**Interpretation:** This reflects the principle that courts generally respect and encourage

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**Application:** The court applied this principle by dismissing the application

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Respondents:** BABCOCK BORSIG…
- **Advocates:** Shaunak…; Sayanta…; +4 more

## Timeline

- **2021-04-06 — Settlement Ag…**: The Financial Creditor and Corporate Debtor…
- **2021-04-07 — Hearing and…**: The court dismissed the CP(IB)/737(KB)/2020 as withdrawn, granting liberty to the…

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