# In the matter of RST Semi Conductors Pvt. Ltd. IA No. 236-2021 in CP No. (IB)-21-ALD-2020

> NCLT judgment dated 2021-07-30. Citation: TCN-2021-NCLT-01543. The matter pertains to CP No. (IB)21/ALD/2020, IA NO. 236/2021 before the Allahabad bench of…

- **Court:** NCLT
- **Order date:** 30 Jul 2021
- **Citation:** TCN-2021-NCLT-01543
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/rst-semi-conductors-pvt-ltd-ia-no-236-2021-in-cp-no-ib-21-ald-2020-2cf28d80

## Summary

### Background

The matter pertains to CP No. (IB)21/ALD/2020, IA NO. 236/2021 before the Allahabad bench of the National Company Law Tribunal. The case involves M/S Versatile Card Technology Pvt. Ltd. V/S M/S RST Semi Conductors Pvt. Ltd. The matter was taken up through video conferencing. The applicant argued that a settlement had been reached between the parties, and IA No. 236/2021 was filed for withdrawal of the proceedings.

## Facts

M/S Versatile Card Technology Pvt. Ltd. initiated proceedings against M/S RST Semi Conductors Pvt. Ltd. under Section 9 of the IBC. During the proceedings, a settlement was reached between the parties. A settlement agreement dated 15.03.2021 was executed, and the applicant contended that the entire amount had been paid in full. Consequently, IA No. 236/2021 was filed for withdrawal of the proceedings. The respondent's counsel did not dispute the applicant's argument regarding the settlement and full payment. The key fact is the settlement reached between the parties and the full payment of the amount due, leading to the withdrawal application.

## Issues and analysis

### Issue 1: Whether the present petition should be dismissed as withdrawn given the settlement reached between …

**Ratio:** When a settlement is reached between parties and the entire amount due has been paid,

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**Reasoning:** The court reasoned that since a settlement had been reached and the entire amount had

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**Interpretation:** This reflects the principle that courts should encourage settlements and avoid

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**Application:** The court applied this principle to the specific facts, noting that the

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## Parties

- **Judges:** Rajesh Daya…
- **Appellants:** M/S Versatile…
- **Respondents:** M/S RST Semi…

## Timeline

- **2021-03-15 — Settlement Ag…**: Settlement agreement dated 15.03.2021…
- **2021-07-30 — Order Da…**: The court dismissed the…

## 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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