# In the matter of Rajat Ispat Pvt. Ltd. CA(IB) No. 331,425 & 428 KB-2019-1430-2019 in CP (IB)No. 1551-KB-2018

> NCLT judgment dated 2019-07-11. Citation: TCN-2019-NCLT-02574. The case involves an application (CA(IB) No. 556/KB/2019) filed by the Interim Resolution…

- **Court:** NCLT
- **Order date:** 11 Jul 2019
- **Citation:** TCN-2019-NCLT-02574
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rajat-ispat-pvt-ltd-caib-no-331425-428-kb-2019-1430-2019-in-cp-ibno-1551-kb-2018-c005c63a

## Summary

### Background

The case involves an application (CA(IB) No. 556/KB/2019) filed by the Interim Resolution Professional to record the settlement of a dispute between the parties before the Committee of Creditors was formed. The matter was settled between the Operational Creditor and the Corporate Debtor.

## Facts

Machinery Agencies (India) initiated a Corporate Insolvency Resolution Process (CIRP) against S & H Manufacturing and Trading Pvt. Ltd. under Section 9 of the IBC. An Interim Resolution Professional was appointed. Before the Committee of Creditors could be formed, the Operational Creditor and the Corporate Debtor reached a settlement. The Interim Resolution Professional then filed an application (CA(IB) No. 556/KB/2019) to record this settlement. The Interim Resolution Professional's fees and costs were also paid.

## Issues and analysis

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

**Ratio:** When a settlement is reached between the Operational Creditor and the Corporate Debtor

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**Reasoning:** The court reasoned that since the matter was settled between the Operational Creditor and

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**Interpretation:** The interpretation is that the IBC allows for the disposal of CIRP if a

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**Application:** In this case, the settlement between Machinery Agencies (India) and S & H

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Machinery…
- **Respondents:** S & H Manufacturin…
- **Advocates:** Ujjaini Cha…; Diprani T…; +3 more

## Timeline

- **2018-01-01 — CP(IB) F…**: CP(IB) No.1515/KB/2018…
- **2019-06-03 — Hearing…**: Hearing held on June…

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