# In the matter of Mehrotra Engineering Works Pvt. Ltd. CA(IB)No. 31-KB-2020 in CP (IB) No. 1028-KB-2018

> NCLT judgment dated 2020-01-06. Citation: TCN-2020-NCLT-02518. The case involves CA(IB) 31/KB/20 filed by the IRP under Rule 11 on the ground that parties…

- **Court:** NCLT
- **Order date:** 6 Jan 2020
- **Citation:** TCN-2020-NCLT-02518
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/mehrotra-engineering-works-pvt-ltd-caibno-31-kb-2020-in-cp-ib-no-1028-kb-2018-070298f6

## Summary

### Background

The case involves CA(IB) 31/KB/20 filed by the IRP under Rule 11 on the ground that parties have settled the dispute. The operational creditor's counsel submits a telephonic instruction that the matter is settled.

## Facts

Pawan Kumar Nagraj Mehta filed a case against Mehrotra Engineering Works Pvt. Ltd. CA(IB) 31/KB/20 was filed by the IRP under Rule 11, claiming the parties have settled the dispute. The operational creditor's counsel provided a telephonic instruction confirming the settlement. The court then directed the corporate debtor to deposit Rs. 50,000 to the Prime Minister's National Relief Fund as a condition for disposing of the application.

## Issues and analysis

### Issue 1: Whether the application CA(IB) 31/KB/20 should be disposed of based on the settlement between the …

**Ratio:** Rule 11 of IBC allows for the disposal of applications when parties have settled the

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**Reasoning:** The court relied on the submission by the operational creditor's counsel that the matter

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**Interpretation:** Rule 11 of IBC is interpreted to allow for the disposal of applications when a

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**Application:** Based on the telephonic instruction indicating settlement, the court applied

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## Parties

- **Judges:** Madan B.…; Virendra Kumar…
- **Appellants:** Pawan Kumar…
- **Respondents:** M/s. Mehrotra…
- **Advocates:** Rajesh Kuma…; Mamta B…; +1 more

## Timeline

- **2020-01-06 — Hearing…**: Hearing held on January…
- **N/A — Filing of CA(IB)…**: CA(IB) 31/KB/20 filed by the IRP under Rule 11 on the ground that parties have settled…

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