# In the matter of Gokul Sugar Industries Ltd. CP (IB)164(MB)-2019

> NCLT judgment dated 2019-04-16. Citation: TCN-2019-NCLT-03834. The case pertains to CP(IB)164(MB)/2019 filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 16 Apr 2019
- **Citation:** TCN-2019-NCLT-03834
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/gokul-sugar-industries-ltd-cp-ib164mb-2019-615b9a3d

## Summary

### Background

The case pertains to CP(IB)164(MB)/2019 filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Financial Creditor, Punjab National Bank, initiated proceedings against the Corporate Debtor, Gokul Sugar Industries Ltd. Talks of settlement were ongoing between the parties, and the Corporate Debtor had submitted an OTS (One Time Settlement) proposal to the Bank.

## Facts

Punjab National Bank initiated insolvency proceedings against Gokul Sugar Industries Ltd under Section 7 of the Insolvency and Bankruptcy Code, 2016. Settlement talks were underway between the parties. Gokul Sugar Industries Ltd had submitted an OTS proposal to Punjab National Bank. Punjab National Bank had received a part payment of Rs. 13.5 crores. The court directed Punjab National Bank to file consent terms within ten days if a settlement is reached. The case was listed for filing the settlement agreement/admission on May 1, 2019. These facts are relevant as they indicate an attempt to resolve the matter outside of formal insolvency proceedings.

## Issues and analysis

### Issue 1: Whether the court should grant time for the parties to finalize a settlement agreement in an …

**Ratio:** Courts generally encourage settlement between parties to reduce litigation and promote

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**Reasoning:** The court acknowledged the ongoing settlement talks and the OTS proposal submitted by the

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**Interpretation:** The legal issue involves balancing the need for timely resolution of insolvency

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**Application:** The ratio and reasoning are applied to the specific facts by directing the

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Punjab National…
- **Respondents:** Gokul Sugar…

## Timeline

- **2019-04-16 — Hearing…**: Hearing of Mumbai Bench of the…
- **2019-05-01 — Next Hearin…**: Case listed for filing…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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