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

> NCLT judgment dated 2019-12-19. Citation: TCN-2019-NCLT-00071. 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-00071
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/earthcon-universal-infratech-pvt-ltd-ib-2252nd-2019-a1e50756

## 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. initiated proceedings against M/s. Earthcon Universal Infratech Pvt. Ltd. under Section 9 of the IBC code 2016, acting as the operational creditor. During the proceedings, both parties presented a Memorandum of Understanding (MoU) dated 2019-12-17, outlining the terms and conditions of a settlement. The existence of the MoU is a key fact, as it directly influenced the court's decision to dispose of the petition. The court's order explicitly states that the MoU forms part of the order, further emphasizing its importance. The liberty granted to the operational creditor to revive the petition in case of breach is also a crucial fact, indicating a conditional disposal rather than a complete resolution.

## Issues and analysis

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

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

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**Reasoning:** The court reasoned that the MoU presented by both parties demonstrated a settlement

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**Interpretation:** This legal issue involves the interpretation of the court's power to

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**Application:** In this specific case, the court applied the ratio by disposing of the petition

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## Parties

- **Judges:** Ch. Mohd Sharief…; K.K. V…
- **Appellants:** M/s. Unity Aurum…
- **Respondents:** M/s. Earthcon…

## Timeline

- **2019-12-17 — Memorandum of…**: Memorandum of Understanding dated 17.12.2019, recording the terms and conditions of the…
- **2019-12-19 — Order Del…**: The court disposed of the petition in light of the MoU, granting liberty to the…

## 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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