# In the matter of Ouranos Food and Beverages Pvt. Ltd. IA-3306-2020 in IB-3502-ND-2019

> NCLT judgment dated 2020-08-24. Citation: TCN-2020-NCLT-00799. The case involves an application (IA/3306/2020) filed by Mr. Vibhanshu Agarwal, an Ex-Director…

- **Court:** NCLT
- **Order date:** 24 Aug 2020
- **Citation:** TCN-2020-NCLT-00799
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ouranos-food-and-beverages-pvt-ltd-ia-3306-2020-in-ib-3502-nd-2019-47f654ee

## Summary

### Background

The case involves an application (IA/3306/2020) filed by Mr. Vibhanshu Agarwal, an Ex-Director of the Corporate Debtor, seeking to withdraw the IB application no. 3502/ND/2019 under Rule 11 of NCLT rules. The Corporate Debtor had also challenged the order passed by the NCLT before the NCLAT. The NCLAT disposed of the appeal, directing the NCLT to take on record the Settlement Agreement and allow the application under Rule 11, considering the settlement between the parties. The application was listed, but the order passed by NCLAT dated 17.08.2020 was not filed.

## Facts

Mr. Vibhanshu Agarwal, an Ex-Director of the Corporate Debtor, filed IA/3306/2020 to withdraw IB application no. 3502/ND/2019. The Corporate Debtor challenged the NCLT's order before the NCLAT. The NCLAT directed the NCLT to record the Settlement Agreement and allow the application under Rule 11. The NCLAT order dated 17.08.2020 was not filed. The Operational Creditor did not deposit any amount with the IRP as directed on 29.07.2020. The CIRP expenses totaled Rs.1,77,800/-. The court ordered the CIRP cost to be divided equally between the Operational Creditor and the Corporate Debtor. Mr. Vibhanshu Agrawal and Mr. Pankaj Gupta, the Ex-Director and Operational Creditor, agreed to pay 50% of the CIRP expenses each to the IRP Sanjay Garg.

## Issues and analysis

### Issue 1: Whether the application for withdrawal of the IB application should be allowed based on the …

**Ratio:** The NCLAT directed the NCLT to take the Settlement Agreement on record and allow the

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**Reasoning:** The NCLAT's direction is binding on the NCLT. The settlement agreement represents a

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**Interpretation:** This reflects the legal principle that settlements are favored in insolvency

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**Application:** Since the NCLAT directed the NCLT to allow the application based on the

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## Parties

- **Judges:** DEEPTI M…; SUMITAPURKA…
- **Appellants:** Pankaj Moha…
- **Respondents:** OURANOS FOODS &…
- **Advocates:** Vibhanshu A…; Parminder…; +4 more

## Timeline

- **2020-07-29 — Previous…**: The Bench directed the Operational…
- **2020-08-17 — NCLAT Or…**: Hon'ble NCLAT passed an order directing the NCLT to take on record the Settlement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 252 — Amendments of Act 1of 2004](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-252)

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