# In the matter of Shree Swastic Sales Corporation Pvt. Ltd. (CA No. 606-2019) in IB-1463-ND-2019

> NCLT judgment dated 2019-09-12. Citation: TCN-2019-NCLT-01495. The case involves a petition filed by Oriental Bank of Commerce against Shree Swastic Sales…

- **Court:** NCLT
- **Order date:** 12 Sept 2019
- **Citation:** TCN-2019-NCLT-01495
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shree-swastic-sales-corporation-pvt-ltd-ca-no-606-2019-in-ib-1463-nd-2019-011f5cd1

## Summary

### Background

The case involves a petition filed by Oriental Bank of Commerce against Shree Swastic Sales Corporation (P) Ltd under Section 7 of the IBC, 2016. The main company petition IB-1463/ND/2018 was admitted on 06.05.2019, and Mr. Rakesh Takyar was appointed as the Insolvency Resolution Professional (IRP). Subsequent to the admission, the parties arrived at a settlement in terms of a One Time Settlement (OTS) offer made by the Corporate Debtor on 12.08.2019. The IRP made a public announcement, fixing 29.08.2019 as the last date for submission of claims. However, only the Financial Creditor submitted a claim. Consequently, the Committee of Creditors (COC) was not constituted. The settlement made by the Corporate Debtor was accepted by the Financial Creditor.

## Facts

Oriental Bank of Commerce initiated insolvency proceedings against Shree Swastic Sales Corporation (P) Ltd under Section 7 of the IBC, 2016. The petition, IB-1463/ND/2018, was admitted on May 6, 2019, and Rakesh Takyar was appointed as the IRP. Following the admission, the parties negotiated a One Time Settlement (OTS) offered by the Corporate Debtor on August 12, 2019. The IRP issued a public announcement with a claim submission deadline of August 29, 2019, but only the Financial Creditor (Oriental Bank of Commerce) submitted a claim. Due to the lack of other claimants, the COC was not formed. The Financial Creditor accepted the OTS. The IRP, Rakesh Takyar, was impleaded as a Respondent. The Financial Creditor's claim amounted to Rs. 61.50 crores. The publication

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## Issues and analysis

### Issue 1: Whether the application should be allowed given the settlement between the parties and the absence …

**Ratio:** The Tribunal can exercise its inherent powers to facilitate settlements, especially when

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**Reasoning:** The court considered that a settlement had been reached between the parties after the

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**Interpretation:** The interpretation is that the Tribunal has the authority to approve

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**Application:** In this case, the settlement was reached between Oriental Bank of Commerce and

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## Parties

- **Judges:** R. VARADH…; K.K. V…
- **Appellants:** Oriental Bank of…
- **Respondents:** Shree Swastic…

## Timeline

- **2018-01-01 — Case Fil…**: IB-1463/ND/201…
- **2019-05-06 — Petition Ad…**: Main company petition…

## 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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