# In the matter of Earthcon Universal Infratech Pvt. Ltd. IB-2252(ND)-2019

> NCLT judgment dated 2019-12-19. Citation: TCN-2019-NCLT-00079. The case involves M/s. Unity Aurum Construction Pvt. Ltd. as the operational creditor and M/s.…

- **Court:** NCLT
- **Order date:** 19 Dec 2019
- **Citation:** TCN-2019-NCLT-00079
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/earthcon-universal-infratech-pvt-ltd-ib-2252nd-2019-072a556c

## Summary

### Background

The case involves M/s. Unity Aurum Construction Pvt. Ltd. as the operational creditor and M/s. Earthcon Universal Infratech Pvt. Ltd. as the corporate debtor. The matter was brought before the National Company Law Tribunal (NCLT) under Section 9 of the IBC code 2016.

## Facts

M/s. Unity Aurum Construction Pvt. Ltd. (Operational Creditor) filed a petition against M/s. Earthcon Universal Infratech Pvt. Ltd. (Corporate Debtor) under Section 9 of the IBC code 2016. During the proceedings, both parties presented a Memorandum of Understanding (MoU) dated 2019-12-17, outlining the terms and conditions of a settlement. The court took the MoU into consideration. The relevance of the MoU is that it represents a settlement agreement between the parties, potentially resolving the dispute that led to the initial petition.

## Issues and analysis

### Issue 1: Whether the petition should be disposed of in light of the Memorandum of Understanding (MoU) …

**Ratio:** A court may dispose of a petition when parties present a settlement agreement, such as a

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**Reasoning:** The court reasoned that the MoU represented a settlement between the parties, making it

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**Interpretation:** This involves interpreting the legal effect of a settlement agreement (MoU)

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**Application:** The court applied this principle by disposing of the petition filed by M/s.

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## Parties

- **Judges:** Ch. Mohd Sharief…; K.K. V…
- **Appellants:** M/s. Unity Aurum…
- **Respondents:** M/s. Earthcon…
- **Advocates:** Ritesh Ag…; Aishwarya A…; +2 more

## Timeline

- **2019-12-17 — Memorandum of…**: A Memorandum of Understanding (MoU) was dated, recording the terms and conditions of the…
- **2019-12-19 — Order Del…**: The court disposed of the petition in light of the MoU, making the MoU part of the order…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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