# In the matter of New Kolkata International Development Private Limited IA (IB) No.1462-KB-2020 in CP (IB) No.668-KB-2019

> NCLT judgment dated 2021-06-14. Citation: TCN-2021-NCLT-01974. The case involves an application filed by the Interim Resolution Professional (IRP) of New…

- **Court:** NCLT
- **Order date:** 14 Jun 2021
- **Citation:** TCN-2021-NCLT-01974
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/new-kolkata-international-development-private-limited-ia-ib-no1462-kb-2020-in-cp-cc25760a

## Summary

### Background

The case involves an application filed by the Interim Resolution Professional (IRP) of New Kolkata International Development Private Limited, the Corporate Debtor, seeking directions regarding a settlement allegedly reached between the Operational Creditor (Prasun Sengupta) and the Corporate Debtor. The IRP sought directions for the execution of the settlement agreement, recall of the order admitting the Corporate Debtor into CIRP, and a stay on the CIRP proceedings. The Corporate Debtor was admitted into CIRP on 2020-03-16. The IRP published a public announcement and received an email indicating a settlement where the Corporate Debtor would pay ₹4,10,00,000/-. However, a formal settlement agreement was not executed due to the lockdown, and the Operational Creditor did

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## Facts

Prasun Sengupta, an Operational Creditor, initiated Corporate Insolvency Resolution Process (CIRP) against New Kolkata International Development Private Limited. The Corporate Debtor was admitted into CIRP on 2020-03-16, and Santanu Bhattacharjee was appointed as the Interim Resolution Professional (IRP). The IRP published a public announcement in Form A on 2020-03-19. An email was received on 2020-04-07 indicating that the parties had settled the dispute amicably on 2020-03-24, with the Corporate Debtor agreeing to pay ₹4,10,00,000/-. However, a formal settlement agreement was not executed due to the lockdown. The IRP received another email on 2020-06-06 from the Operational Creditor stating that the parties had arrived at a settlement and requesting the IRP not to

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can direct the parties to execute a settlement agreement or …

**Ratio:** The Adjudicating Authority cannot direct parties to execute a settlement agreement or

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**Reasoning:** The court reasoned that it lacks the authority to enforce an agreement that has not been

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**Interpretation:** This highlights the importance of formalizing settlement agreements and

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**Application:** In this case, since no settlement agreement was produced, the court could not

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## Parties

- **Judges:** Rajasekha…; Harish Chander…
- **Appellants:** Santanu Bhattachar…
- **Respondents:** New Kolkata…; PRASUN SE…

## Timeline

- **2020-03-16 — Corporate Debtor…**: New Kolkata International Development Private Limited was admitted into the Corporate…
- **2020-03-19 — Public Annou…**: The IRP published a public announcement in Form A in Financial Express (English) and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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