# In the matter of Matoshri Laxmi Sugar Co-Generations Inds. Ltd. CP(IB)-153(MB)-2019

> NCLT judgment dated 2019-05-07. Citation: TCN-2019-NCLT-03422. The case involves a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. A…

- **Court:** NCLT
- **Order date:** 7 May 2019
- **Citation:** TCN-2019-NCLT-03422
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/matoshri-laxmi-sugar-co-generations-inds-ltd-cpib-153mb-2019-5a657787

## Summary

### Background

The case involves a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016. A consent term was agreed upon between Punjab National Bank (the lender) and Matoshri Laxmi Sugar Co-Generations Inds. Ltd. (the borrower). The consent terms were placed on record, outlining the repayment of dues through a One Time Settlement (OTS).

## Facts

Punjab National Bank filed a petition against Matoshri Laxmi Sugar Co-Generations Inds. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. Both parties reached a consent agreement, where Matoshri Laxmi Sugar Co-Generations Inds. Ltd. agreed to pay Rs. 67.00 crores to Punjab National Bank as a One Time Settlement (OTS). The borrower had already paid Rs. 5.75 Crore as upfront payment on 2019-03-27 and Rs. 13.25 Crore till 2019-05-07. The remaining amount was to be paid in installments: Rs. 19.00 Crores by 2019-12-31, Rs. 19.00 Crores by 2020-03-31, and Rs. 10 Crores by 2020-12-31. The borrower was to deposit Post Dated Cheques (PDCs) for these installments. The court disposed of the petition as withdrawn based on these consent terms.

## Issues and analysis

### Issue 1: Whether the consent terms agreed upon between Punjab National Bank and Matoshri Laxmi Sugar …

**Ratio:** The principle of upholding agreements reached through mutual consent is a fundamental

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**Reasoning:** The court acknowledged the consent terms placed on record, indicating that both parties

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**Interpretation:** The interpretation of the consent terms involves understanding the obligations

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**Application:** In this specific case, the court's acceptance of the consent terms meant that

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Punjab National…
- **Respondents:** Matoshri Laxmi…

## Timeline

- **2019-03-27 — Upfront P…**: The Borrower paid an amount of Rs.…
- **2019-05-07 — Consent Terms…**: A Consent Terms dated 07.05.2019 placed on record. The Borrower has thereafter paid an…

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