# In the matter of S & H Manufacturing and Trading Pvt. Ltd. CA(IB)No. 556-KB-2019 in CP(IB) No. 1515-KB-2018

> NCLT judgment dated 2019-06-03. Citation: TCN-2019-NCLT-03093. The case involves an application (CA(IB) No. 556/KB/2019) filed by the Interim Resolution…

- **Court:** NCLT
- **Order date:** 3 Jun 2019
- **Citation:** TCN-2019-NCLT-03093
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/s-h-manufacturing-and-trading-pvt-ltd-caibno-556-kb-2019-in-cpib-no-1515-kb-2018-5b0fa753

## 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 fully 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 also confirmed that their fees and costs had been paid. The settlement led to the disposal of the CIRP application.

## Issues and analysis

### Issue 1: Whether the settlement between the Operational Creditor and the Corporate Debtor, reached before …

**Ratio:** A settlement between the Operational Creditor and the Corporate Debtor can be a valid

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**Reasoning:** The court reasoned that since the parties had settled the matter, continuing the CIRP

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**Interpretation:** This implies that the court recognizes the autonomy of the parties to resolve

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**Application:** In this case, the court applied the principle by accepting the settlement and

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## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** Machinery…
- **Respondents:** S & H Manufacturin…

## Timeline

- **2018-01-01 — CP(IB) No.1515…**: Corporate Insolvency…
- **2019-06-03 — Hearing…**: Hearing on the application…

## 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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