# In the matter of Cargo Solar Power (Gujarat) (P) Ltd. IB-204-ND-2018

> NCLT judgment dated 2018-08-20. Citation: TCN-2018-NCLT-00927. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated by Tractebel…

- **Court:** NCLT
- **Order date:** 20 Aug 2018
- **Citation:** TCN-2018-NCLT-00927
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cargo-solar-power-gujarat-p-ltd-ib-204-nd-2018-620ad85b

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated by Tractebel Engineering (P) Limited, the Operational Creditor, against Cargo Solar Power (Gujarat) (P) Ltd, the Corporate Debtor. The CIRP was initiated on 2018-07-13. Mr. Vimal Kumar Sharma was appointed as the Interim Resolution Professional (IRP). A public notice was issued, and claims were received, including from Corporation Bank. The Committee of Creditors (COC) was constituted on 2018-08-09, with Corporation Bank present. The IRP filed an application (CA No. 193/C-III/ND/2018) reporting that the Operational Creditor and Corporate Debtor had entered into a settlement agreement.

## Facts

Tractebel Engineering (P) Limited, the Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against Cargo Solar Power (Gujarat) (P) Ltd, the Corporate Debtor, on 2018-07-13. Vimal Kumar Sharma was appointed as the Interim Resolution Professional (IRP). A public notice was issued on 2018-07-24, leading to claims from Corporation Bank and the Operational Creditor. The Committee of Creditors (COC) was formed on 2018-08-09, with Corporation Bank participating. The IRP reported a settlement agreement between the Operational Creditor and the Corporate Debtor in CA No. 193/C-III/ND/2018. The settlement approval exceeded 90%. The Corporate Debtor had also filed an application (diary No.5269 dated 2018-08-02) to stop the CIRP process, and another

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## Issues and analysis

### Issue 1: Whether the settlement agreement between the Operational Creditor and the Corporate Debtor warrants …

**Ratio:** When a settlement is reached between the Operational Creditor and the Corporate Debtor,

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**Reasoning:** The Tribunal considered the application filed by the RP/IRP, noting the high percentage

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**Interpretation:** The legal principle emphasizes the importance of facilitating settlements

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**Application:** In this case, the settlement agreement between Tractebel Engineering (P)

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## Parties

- **Judges:** R. VARADH…; V.K. SUB…
- **Appellants:** Tracetebel Engg.…
- **Respondents:** Cargo Solar Power…

## Timeline

- **2018-07-13 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP)…
- **2018-07-24 — Public Notice…**: Public Notice was…

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