# In the matter of Delhi Baroda Road Carrier Pvt. Ltd. (IB)-53(PB)-2019

> NCLT judgment dated 2019-02-05. Citation: TCN-2019-NCLT-05000. The case involves Reliance Commercial Finance Ltd. as the applicant/petitioner and Delhi Baroda…

- **Court:** NCLT
- **Order date:** 5 Feb 2019
- **Citation:** TCN-2019-NCLT-05000
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/delhi-baroda-road-carrier-pvt-ltd-ib-53pb-2019-683c6043

## Summary

### Background

The case involves Reliance Commercial Finance Ltd. as the applicant/petitioner and Delhi Baroda Road Carrier Pvt. Ltd. as the respondent. The matter pertains to an order under Section 7 of the Insolvency & Bankruptcy Code, 2016. The respondent's counsel presented a settlement agreement between the parties, with an initial installment of Rs. 51 Lacs paid on 2019-01-30.

## Facts

Reliance Commercial Finance Ltd. initiated insolvency proceedings against Delhi Baroda Road Carrier Pvt. Ltd. under Section 7 of the Insolvency & Bankruptcy Code, 2016. During the proceedings, the parties reached a settlement agreement. The respondent, Delhi Baroda Road Carrier Pvt. Ltd., made an initial payment of Rs. 51 Lacs on 2019-01-30 as part of the settlement. The petitioner's counsel requested the matter be kept pending until the final installment due date of 2019-03-25. The court took the settlement on record and disposed of the petition, granting the petitioner the liberty to file a fresh application if the settlement terms are violated. The key fact is the settlement agreement, which led the court to dispose of the initial insolvency petition.

## Issues and analysis

### Issue 1: Whether the settlement agreement between Reliance Commercial Finance Ltd. and Delhi Baroda Road …

**Ratio:** Once parties enter into a settlement and restructure the loan, the amount is no longer

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**Reasoning:** The court reasoned that the restructuring of the loan through the settlement agreement

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**Interpretation:** Section 3(12) defines 'default' in the context of the Insolvency &

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**Application:** In this case, the settlement agreement and the initial payment of Rs. 51 Lacs

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## Parties

- **Judges:** M. M. K…; Pradeep R.…
- **Appellants:** Reliance Commercia…
- **Respondents:** Delhi Baroda Road…

## Timeline

- **2019-01-30 — Initial Installment…**: Delhi Baroda Road Carrier Pvt. Ltd. paid an initial installment of Rs. 51 Lacs as part of…
- **2019-02-05 — Order Del…**: The NCLT delivered the order disposing of the petition with liberty to file a fresh…

## 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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