# In the matter of Shah Group Builders & Infra Projects Ltd. C.P. (IB)-3527(MB)-2019

> NCLT judgment dated 2021-07-02. Citation: TCN-2021-NCLT-01862. The case pertains to a company petition filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 2 Jul 2021
- **Citation:** TCN-2021-NCLT-01862
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shah-group-builders-infra-projects-ltd-cp-ib-3527mb-2019-07ad6a0e

## Summary

### Background

The case pertains to a company petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The hearing was conducted at the Mumbai Bench of the National Company Law Tribunal (NCLT). The financial creditor's counsel, Mr. Yash Jain, and the respondent's counsel, Mr. Jayesh Nishar, were present through virtual hearing. The corporate debtor's counsel, Mr. Jayesh Nishar, reported that a settlement had been reached with the petitioner, and part of the amount had been paid as per the settlement.

## Facts

Mr. Yash Jain appeared as counsel for the financial creditor. Mr. Jayesh Nishar appeared as counsel for the respondent. Mr. Yash Jain, instructed by counsel appearing on behalf of Halai & Co., holding Vakalatnama on behalf of the petitioner, was present and reported no instruction from the petitioner. Mr. Jayesh Nishar, counsel appearing for the corporate debtor, stated that a settlement had been entered into with the petitioner, and part of the amount had been paid as per the settlement. The case was a company petition. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016. The court disposed of the petition because of the settlement and lack of instructions from the petitioner's counsel.

## Issues and analysis

### Issue 1: Whether the company petition should be disposed of given the settlement between the petitioner and …

**Ratio:** A court may dismiss a case if the parties have reached a settlement and there is no

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**Reasoning:** The court reasoned that since the corporate debtor and the petitioner had reached a

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**Interpretation:** This indicates that when parties involved in a legal dispute reach a mutual

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**Application:** In this specific case, the court applied the ratio by considering the

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** G. G. Photo…
- **Respondents:** Shah Group…
- **Advocates:** Yash…; Jayesh N…

## Timeline

- **2021-07-02 — Hearing…**: Hearing of the Mumbai Bench of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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