The case involves an application filed by M/s National Products, an operational creditor, against M/s Delhi Control Devices Private Limited, the corporate debtor. The operational creditor sought to initiate contempt proceedings against the corporate debtor and one of its directors for failing to honor a memorandum of settlement. Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor on 15.02.2019, and an IRP was appointed. Subsequently, a settlement was reached, and the initial petition was withdrawn. However, due to a breach of the settlement, the operational creditor sought revival of the company petition.
M/s National Products, an operational creditor, filed an application against M/s Delhi Control Devices Private Limited, the corporate debtor, seeking to initiate contempt proceedings for breach of a settlement agreement. CIRP had been initiated against the corporate debtor on 15.02.2019, and Mr. Ashok Kumar Gupta was appointed as the IRP. An earlier petition was withdrawn following a settlement. However, the operational creditor sought revival of the petition due to a breach of the settlement. The key fact is that the application for contempt and revival was filed during the ongoing CIRP. The relevance of this fact is that Section 14 of the IBC imposes a moratorium on legal proceedings against the corporate debtor during CIRP.
Sign in to view the parties.
Corporate Insolvency Resolution Process…
Mr. Ashok Kuma…
The case involves an application filed by M/s National Products, an operational creditor, against M/s Delhi Control Devices Private Limited, the corporate debtor. The operational creditor sought to initiate contempt proceedings against the corporate debtor and one of its directors for failing to honor a memorandum of settlement. Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor on 15.02.2019, and an IRP was appointed. Subsequently, a settlement was reached, and the initial petition was withdrawn. However, due to a breach of the settlement, the operational creditor sought revival of the company petition.
M/s National Products, an operational creditor, filed an application against M/s Delhi Control Devices Private Limited, the corporate debtor, seeking to initiate contempt proceedings for breach of a settlement agreement. CIRP had been initiated against the corporate debtor on 15.02.2019, and Mr. Ashok Kumar Gupta was appointed as the IRP. An earlier petition was withdrawn following a settlement. However, the operational creditor sought revival of the petition due to a breach of the settlement. The key fact is that the application for contempt and revival was filed during the ongoing CIRP. The relevance of this fact is that Section 14 of the IBC imposes a moratorium on legal proceedings against the corporate debtor during CIRP.
Corporate Insolvency Resolution Process…
Mr. Ashok Kuma…