# In the matter of OCL Iron and Steel Ltd. CP (lB) No.63-CTB-2020

> NCLT judgment dated 2021-07-07. Citation: TCN-2021-NCLT-01823. CP (IB) No. 63/CTB/2020 was filed by the Operational Creditor. A settlement agreement dated…

- **Court:** NCLT
- **Order date:** 7 Jul 2021
- **Citation:** TCN-2021-NCLT-01823
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ocl-iron-and-steel-ltd-cp-lb-no63-ctb-2020-b60a92be

## Summary

### Background

CP (IB) No. 63/CTB/2020 was filed by the Operational Creditor. A settlement agreement dated 15.01.2021 was entered into between the Operational Creditor and the Corporate Debtor, wherein the Corporate Debtor agreed to pay the outstanding dues in monthly installments, with the last installment due on or before 28.10.2021.

## Facts

The Operational Creditor filed CP (IB) No. 63/CTB/2020 against the Corporate Debtor. A settlement agreement dated 15.01.2021 was reached between the parties, where the Corporate Debtor agreed to pay outstanding dues in monthly installments, with the final installment due by 28.10.2021. The Operational Creditor's counsel submitted the settlement agreement to the court. The court took the settlement agreement on record. The relevance of the settlement agreement is that it forms the basis for the dismissal of the petition, contingent on the Corporate Debtor fulfilling its payment obligations.

## Issues and analysis

### Issue 1: Whether the settlement agreement between the Operational Creditor and the Corporate Debtor should …

**Ratio:** A settlement agreement reached between parties in a legal proceeding can be taken on

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**Reasoning:** The court acknowledged the settlement agreement submitted by the Operational Creditor's

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**Interpretation:** This implies that courts generally encourage and recognize settlement

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**Application:** In this case, the court's decision to take the settlement agreement on record

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## Parties

- **Judges:** Rajasekhar V. K…; Satya Ranjan…
- **Respondents:** M/s. Furnace…; P.P. Biswal…

## Timeline

- **2021-01-15 — Settlement Agreement…**: Settlement Agreement dated 15.01.2021 was entered into between the Operational Creditor…
- **2021-07-07 — Hearing…**: Order sheet of the hearing on…

## 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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