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

> NCLT judgment dated 2019-02-05. Citation: TCN-2019-NCLT-05004. 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-05004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/delhi-baroda-road-carrier-pvt-ltd-ib-53pb-2019-c409a027

## 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 placed on record a settlement agreement between the parties, with an initial installment of Rs. 51 Lacs paid on 2019-01-30. The petitioner requested the matter be kept pending until the final installment due date of 2019-03-25.

## Facts

Reliance Commercial Finance Ltd. filed a petition against Delhi Baroda Road Carrier Pvt. Ltd. under Section 7 of the Insolvency & Bankruptcy Code, 2016. During the proceedings, the respondent's counsel presented a settlement agreement between the parties, supported by evidence of an initial payment of Rs. 51 Lacs made on 2019-01-30. The petitioner requested the matter be kept pending until the final installment due date of 2019-03-25. The court considered the settlement and the payment, leading to the disposal of the petition with liberty to the petitioner to re-apply if the settlement terms are violated. The key fact is the existence of a settlement agreement and partial payment, which influenced the court's decision to dispose of the petition.

## Issues and analysis

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

**Ratio:** A settlement agreement, particularly when coupled with restructuring of the loan and

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**Reasoning:** The court reasoned that once the parties entered into a settlement and the loan was

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**Interpretation:** Section 3(12) defines 'default' in the context of insolvency proceedings. The

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**Application:** In this specific case, the existence of the settlement agreement and the

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## Parties

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

## Timeline

- **2019-01-30 — Partial P…**: An installment of Rs. 51 Lacs was paid…
- **2019-02-05 — Order Del…**: The court disposed of the petition with liberty to the petitioner to file an appropriate…

## 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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