# In the matter of Jagtar Singh & Sons Hydraulics Private Limited I.A. No. 2196-2021 in IB-619(ND)-2019

> NCLT judgment dated 2021-11-23. Citation: TCN-2021-NCLT-00442. The case involves an application filed by the Financial Creditor, Intec Capital Limited, for…

- **Court:** NCLT
- **Order date:** 23 Nov 2021
- **Citation:** TCN-2021-NCLT-00442
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jagtar-singh-sons-hydraulics-private-limited-ia-no-2196-2021-in-ib-619nd-2019-04199384

## Summary

### Background

The case involves an application filed by the Financial Creditor, Intec Capital Limited, for the revival/restoration/re-initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, Jagtar Singh & Sons Hydraulic Private Limited. The CIRP was initially admitted on September 3, 2019. Subsequently, the Appellate Authority referred the matter to mediation, resulting in a settlement deed dated December 2, 2019. The Appellate Authority set aside the admission order on December 6, 2019, conditional on compliance with the settlement terms. However, the Corporate Debtor failed to honor the settlement terms, leading to the present application for CIRP revival.

## Facts

Intec Capital Limited, the Financial Creditor, initiated CIRP against Jagtar Singh & Sons Hydraulic Private Limited, the Corporate Debtor, under Section 7 of the IBC. The CIRP was initially admitted on September 3, 2019. An appeal led to mediation and a settlement agreement dated December 2, 2019. The Appellate Authority conditionally set aside the admission order on December 6, 2019, subject to compliance with the settlement terms. The Corporate Debtor provided post-dated cheques as part of the settlement. However, the cheques bounced, and the Corporate Debtor failed to comply with the settlement terms. The Hon'ble NCLAT had previously stated that the CIRP could be revived in case of a breach of settlement. The Appellate Authority gave the Corporate

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) should be revived against the Corporate …

**Ratio:** The legal principle applied is that a previously initiated CIRP can be revived if the

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**Reasoning:** The court reasoned that the Corporate Debtor failed to honor the terms of the settlement

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**Interpretation:** The interpretation is that a settlement agreement in CIRP proceedings is

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** BACHU VENKAT…; Narender Kumar…
- **Respondents:** JAGTAR SINGH &…
- **Advocates:** Aabhas…

## Timeline

- **2019-09-03 — CIRP Admi…**: Corporate Insolvency Resolution Process…
- **2019-09-19 — Appeal and Mediation…**: The Hon'ble Appellate Authority…

## 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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