# In the matter of India Forms Centre Pvt. Ltd. CA(IB)No. 04-KB-2020 in CP(IB)No. 162-KB-2019

> NCLT judgment dated 2020-01-02. Citation: TCN-2020-NCLT-02581. The case involves a corporate insolvency resolution process under Section 7 of the IBC. An…

- **Court:** NCLT
- **Order date:** 2 Jan 2020
- **Citation:** TCN-2020-NCLT-02581
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/india-forms-centre-pvt-ltd-caibno-04-kb-2020-in-cpibno-162-kb-2019-7326181f

## Summary

### Background

The case involves a corporate insolvency resolution process under Section 7 of the IBC. An application, CA(IB) No.04/KB/2020, was filed under Rule 11 of NCLT Rules, stating that a deed of settlement had been reached between the parties.

## Facts

Priya Enclave Pvt. Ltd. filed a case against India Forms Centre Pvt. Ltd. under Section 7 of the IBC. CA(IB) No.04/KB/2020 was filed stating that a settlement had been reached between the parties. The court observed that the parties had indeed entered into a settlement. The application was disposed of subject to the condition that Rs. 50,000 be deposited with the Prime Minister's National Relief Fund. The IRP may claim his fees separately. The Financial Creditor has the liberty to revive the application if the settlement fails. The corporate debtor appeared through its counsel, while the financial creditor did not appear.

## Issues and analysis

### Issue 1: Whether the application CA(IB) No.04/KB/2020 should be disposed of based on the settlement arrived …

**Ratio:** When parties to a proceeding under the IBC arrive at a settlement, the court has the

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**Reasoning:** The court observed that the parties had entered into a settlement, which is a valid

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**Interpretation:** The interpretation of the law allows for the disposal of an application when a

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**Application:** The court applied this principle by disposing of the application CA(IB)

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Priya Enclave…
- **Respondents:** India Forms…

## Timeline

- **2020-01-02 — Hearing…**: Hearing held on January…

## 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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