# In the matter of Coastal Energen Pvt. Ltd. CP-253-IB-2018

> NCLT judgment dated 2018-12-06. Citation: TCN-2018-NCLT-00152. The case involves a settlement between Gammon Engineers & Contractors Pvt Ltd and Coastal…

- **Court:** NCLT
- **Order date:** 6 Dec 2018
- **Citation:** TCN-2018-NCLT-00152
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/coastal-energen-pvt-ltd-cp-253-ib-2018-101d21de

## Summary

### Background

The case involves a settlement between Gammon Engineers & Contractors Pvt Ltd and Coastal Energen Pvt Ltd, where Coastal Energen agreed to pay Rs. 2,30,00,000/- via DD No. 94114 dated 12.11.2018 and the balance in six installments starting 01.04.2019. The final installment was subject to reconciliation of accounts.

## Facts

Gammon Engineers & Contractors Pvt Ltd filed a petition against Coastal Energen Pvt Ltd. Both parties reached a settlement where Coastal Energen agreed to pay Rs. 2,30,00,000/- via DD No. 94114 dated 12.11.2018. The remaining balance was to be paid in six installments starting from 01.04.2019. The first four installments were to be Rs. 1.50 Crores each, the fifth installment was to be Rs. 2.23 Crores, and the final installment was to be Rs. 2.41 Crores, payable on 15.07.2019. The final installment was subject to reconciliation of accounts. The settlement included a clause allowing Gammon Engineers & Contractors Pvt Ltd to revive the petition if Coastal Energen Pvt Ltd defaulted on the payment schedule. This settlement was presented to the National Company Law

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## Issues and analysis

### Issue 1: Whether the settlement agreement between Gammon Engineers & Contractors Pvt Ltd and Coastal …

**Ratio:** The principle of upholding settlement agreements is a cornerstone of dispute resolution,

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**Reasoning:** The court reasoned that since both parties had arrived at a settlement and agreed to the

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**Interpretation:** The interpretation involves recognizing the validity and enforceability of

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**Application:** In this case, the court applied the principle by accepting the settlement

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## Parties

- **Judges:** Ch. Mohd Sharief…
- **Appellants:** GAMMON ENGINEERS…
- **Respondents:** COASTAL ENERGEN…

## Timeline

- **2018-11-12 — Demand Draf…**: Coastal Energen Pvt Ltd issued DD…
- **2018-12-06 — Hearing…**: Hearing held at 10.30…

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