# In the matter of Nice Projects Ltd. (IB)-795(ND)2019

> NCLT judgment dated 2019-07-11. Citation: TCN-2019-NCLT-02570. The case involves a joint application filed by the Operational Creditor and the Corporate…

- **Court:** NCLT
- **Order date:** 11 Jul 2019
- **Citation:** TCN-2019-NCLT-02570
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nice-projects-ltd-ib-795nd2019-6847a06f

## Summary

### Background

The case involves a joint application filed by the Operational Creditor and the Corporate Debtor seeking termination of the Corporate Insolvency Resolution (CIR) process. A settlement was reached between the parties, executed before the admission order was uploaded. The Interim Resolution Professional (IRP) confirmed that no claims had been received.

## Facts

Ayam Weldmesh Pvt. Ltd. initiated a CIR process against Nice Projects Ltd. However, before the constitution of a Committee of Creditors (COC), both parties reached a settlement. They jointly filed an application to terminate the CIR process. The Interim Resolution Professional (IRP) confirmed that no claims had been received. The settlement was executed before the admission order was uploaded. The Corporate Debtor is liable to cover the expenses of the IRP along with a reasonable fee. The case references the decision of the Hon'ble Apex Court in 'Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of India & Ors.', W.P.(C) 99/2018.

## Issues and analysis

### Issue 1: Whether the CIR process can be terminated based on a settlement between the Operational Creditor …

**Ratio:** The CIR process can be terminated if a settlement is reached between the parties,

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**Reasoning:** The court reasoned that since a settlement had been reached, no COC was formed, and no

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**Interpretation:** This interprets the Insolvency and Bankruptcy Code (IBC) to allow for

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**Application:** In this case, the settlement between Ayam Weldmesh Pvt. Ltd. and Nice Projects

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## Parties

- **Judges:** V.K. SUB…; Ina Mal…
- **Appellants:** Arjun A…
- **Respondents:** Nice Projec…; Faisal…
- **Advocates:** Arjun A…; Sreenita…; +2 more

## Timeline

- **2019-07-11 — Hearing…**: Hearing before the New Delhi Bench of…
- **2019-07-17 — Next Hearin…**: Case scheduled to come…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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