# In the matter of Jalan Transolution (India) Ltd.(IB)-1721(ND)-2018

> NCLT judgment dated 2019-05-09. Citation: TCN-2019-NCLT-03358. The case involves SRLK Enterprises LLP initiating a Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 9 May 2019
- **Citation:** TCN-2019-NCLT-03358
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jalan-transolution-india-ltdib-1721nd-2018-70b106a3

## Summary

### Background

The case involves SRLK Enterprises LLP initiating a Corporate Insolvency Resolution Process (CIRP) against Jalan Transolution (India) Ltd. An application was filed under Section 7 of the IBC, 2016. During the proceedings, a compromise was reached between the parties before the constitution of the Committee of Creditors (COC). The IRP was duly informed of this compromise. The applicant's counsel requested the termination of the CIRP.

## Facts

SRLK Enterprises LLP initiated CIRP against Jalan Transolution (India) Ltd. under Section 7 of the IBC, 2016. Before the Committee of Creditors (COC) was formed, the parties reached a compromise. The IRP was informed about this compromise. The applicant's counsel requested the termination of the CIRP. The court considered the Supreme Court's decision in 'Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of India & Ors.', W.P.(C) 99/2018. A settlement was reached on April 20, 2019, and communicated to the IRP. The COC was constituted on April 24, 2019. The Corporate Debtor is to liquidate the expenses incurred in the CIR process as per bills submitted by IRP.

## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) can be terminated based on a compromise …

**Ratio:** CIRP can be terminated if a compromise is reached between the parties, especially when

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**Reasoning:** The court reasoned that the compromise reached between the parties, before the

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**Interpretation:** The interpretation is that the IBC allows for flexibility in resolving

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**Application:** In this case, the parties reached a compromise before the COC was constituted.

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## Parties

- **Judges:** V.K. SUB…; Ina Mal…
- **Appellants:** SRLK Enterprises…
- **Respondents:** Jalan Transolution…

## Timeline

- **2019-04-20 — Settlement…**: Settlement was arrived at between the…
- **2019-04-24 — COC Const…**: The Committee of…

## 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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