# In the matter of ETA Engineering Pvt. Ltd. CP-1226-IB-2018

> NCLT judgment dated 2019-07-31. Citation: TCN-2019-NCLT-02190. The case involves a petition under CP/1226/IB/2018. Counsels for both parties were present. The…

- **Court:** NCLT
- **Order date:** 31 Jul 2019
- **Citation:** TCN-2019-NCLT-02190
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/eta-engineering-pvt-ltd-cp-1226-ib-2018-98d00b4a

## Summary

### Background

The case involves a petition under CP/1226/IB/2018. Counsels for both parties were present. The Operational Creditor submitted that post-dated cheques were given, and one cheque has been encashed. A settlement was reached between the parties.

## Facts

The Operational Creditor, SRI ENGINEERING WORKS, filed a petition CP/1226/IB/2018 against the Corporate Debtor, ETA ENGINEERING PVT LTD. Post-dated cheques were issued by the Corporate Debtor to the Operational Creditor. One of the cheques was encashed. A settlement was reached between the parties. The Operational Creditor was granted liberty to revive the petition if the cheques are dishonored. This indicates that the settlement was conditional upon the cheques being honored.

## Issues and analysis

### Issue 1: Whether the petition should be disposed of given the settlement between the parties involving …

**Ratio:** A petition can be disposed of when a settlement has been reached between the parties,

…

**Reasoning:** The court reasoned that since a settlement was reached and one cheque was encashed, the

…

**Interpretation:** This reflects the principle that courts encourage settlements between parties

…

**Application:** The court applied this principle to the specific facts, noting the settlement

…

## Parties

- **Judges:** Ch. Mohd Sharief…; Anil Ku…
- **Appellants:** ENGINEERING…
- **Respondents:** ETA Engineering…

## Timeline

- **2018-01-01 — Petition…**: CP/1226/IB/2018…
- **2019-07-31 — Hearing…**: Hearing held at 10:30…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/eta-engineering-pvt-ltd-cp-1226-ib-2018-98d00b4a