# In the matter of H S Power Projects Pvt. Ltd. (IB)-300(ND)2019

> NCLT judgment dated 2019-03-25. Citation: TCN-2019-NCLT-04368. CA 363/2019 was filed on behalf of the Ex-Directors, bringing on record a settlement between…

- **Court:** NCLT
- **Order date:** 25 Mar 2019
- **Citation:** TCN-2019-NCLT-04368
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/h-s-power-projects-pvt-ltd-ib-300nd2019-ec8d88c5

## Summary

### Background

CA 363/2019 was filed on behalf of the Ex-Directors, bringing on record a settlement between them and the Operational Creditor. The parties requested the termination of the Corporate Insolvency Resolution (CIR) process. The Operational Creditor supported the application, stating that their claim had been settled in full.

## Facts

CA 363/2019 was filed by the Ex-Directors of Eonn Plast Pvt. Ltd. seeking termination of the CIR process based on a settlement with the Operational Creditor. The Operational Creditor confirmed the settlement. The IRP stated no other claims were received and no COC was formed. The court considered the settlement and the Swiss Ribbons case. The ex-Directors had operated the Bank Account for effecting the settlement with the Operational Creditor. The IRP wished to bring on record certain violations by the ex-Directors while the Moratorium was in force.

## Issues and analysis

### Issue 1: Whether the CIR process should be terminated based on the settlement between the Ex-Directors and …

**Ratio:** A settlement between the parties can be a valid ground for terminating the CIR process,

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**Reasoning:** The court considered the settlement agreement and the confirmation from the Operational

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**Interpretation:** The legal principle is that a settlement between the parties involved in a CIR

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**Application:** In this case, the settlement between the Ex-Directors and the Operational

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## Parties

- **Judges:** V.K. SUB…; Ina Mal…
- **Appellants:** Ajay K. Jain, Mr.…
- **Respondents:** M/s. Eonn Plast…

## Timeline

- **2019-03-25 — Hearing…**: Hearing before the New Delhi Bench of…
- **2019-01-01 — Filing of CA…**: CA 363/2019 filed on behalf of the…

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