# In the matter of Fabtech Projects and Engineers Limited C.P. No. 56-(MAH)-2017

> NCLT judgment dated 2017-04-10. Citation: TCN-2017-NCLT-00917. The case involves a settlement between Ador Welding Ltd. (Operational Creditor) and Fabtech…

- **Court:** NCLT
- **Order date:** 10 Apr 2017
- **Citation:** TCN-2017-NCLT-00917
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fabtech-projects-and-engineers-limited-cp-no-56-mah-2017-cb4ae507

## Summary

### Background

The case involves a settlement between Ador Welding Ltd. (Operational Creditor) and Fabtech Projects & Engineers Limited (Corporate Debtor). Ador Welding Ltd. filed a company petition against Fabtech Projects & Engineers Limited. The parties reached a settlement and tendered consent terms seeking withdrawal of the company petition.

## Facts

Ador Welding Ltd. (Operational Creditor) initiated a company petition against Fabtech Projects & Engineers Limited (Corporate Debtor). The parties subsequently reached a settlement. As part of the settlement, Fabtech Projects & Engineers Limited agreed to pay Ador Welding Ltd. Rs. 25,00,000 in five installments. The payment schedule was as follows: Rs. 5,00,000 on or before April 30, 2017; Rs. 5,00,000 on or before May 31, 2017; Rs. 5,00,000 on or before June 30, 2017; Rs. 5,00,000 on or before July 31, 2017; and Rs. 5,00,000 on or before August 31, 2017. The settlement also included a default clause stating that if Fabtech Projects & Engineers Limited failed to make any of the installment payments, the company petition would be admitted, and Fabtech

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## Issues and analysis

### Issue 1: Whether the Company Petition should be dismissed as withdrawn based on the settlement reached …

**Ratio:** When parties to a legal proceeding reach a settlement and agree to certain terms, the

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**Reasoning:** The court reasoned that since the parties had arrived at a settlement, as evidenced by

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**Interpretation:** This legal issue involves the interpretation of the principles of settlement

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**Application:** In this specific case, the ratio and reasoning were applied to the facts by

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## Parties

- **Judges:** B.S.V. Prakash…; V. Nallasen…
- **Appellants:** Ador Weldin…
- **Respondents:** Fabtech Projects…

## Timeline

- **2017-04-10 — Hearing of Mum…**: Hearing of Mumbai Bench of the…
- **2017-04-10 — Consent Term…**: Consent Terms agreed…

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