# In the matter of SPML Infra Limited IA-1327-2021 in IB-3210(ND)-2019

> NCLT judgment dated 2021-03-18. Citation: TCN-2021-NCLT-02657. The case involves UPI Polymers Private Limited as the Financial Creditor and SPML Infra Limited…

- **Court:** NCLT
- **Order date:** 18 Mar 2021
- **Citation:** TCN-2021-NCLT-02657
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/spml-infra-limited-ia-1327-2021-in-ib-3210nd-2019-ad9ec97d

## Summary

### Background

The case involves UPI Polymers Private Limited as the Financial Creditor and SPML Infra Limited as the Corporate Debtor. An application was filed jointly by the Operational Creditor and Corporate Debtor for recording the settlement between the parties. The Resolution Professional also filed an application along with Form-F (A) in the Registry. The Resolution Professional submitted that in case the joint application is allowed, he has no objection because the expenses made on public announcement and other miscellaneous charges have already been paid. The public announcement was made on 13.03.2021, and the CoC has not been constituted.

## Facts

UPI Polymers Private Limited initiated a corporate insolvency resolution process (CIRP) against SPML Infra Limited under Section 9 of the IBC code 2016. A joint application was filed by the Operational Creditor and Corporate Debtor to record a settlement. The Resolution Professional also filed Form-F (A). The Corporate Debtor paid Rs.2,67,41,117/- plus interest of Rs.1,62,00,000/-, totaling Rs.4,29,41,117/-. The public announcement regarding the CIRP was made on 13.03.2021, but the Committee of Creditors (CoC) was not constituted. The settlement agreement was dated 17.03.2021. The initial order was dated 05.03.2021.

## Issues and analysis

### Issue 1: Whether the settlement arrived at between the parties warrants the recall of the earlier order and …

**Ratio:** The principle of upholding settlements and promoting amicable resolutions in insolvency

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**Reasoning:** The court reasoned that a settlement had been reached between the parties, and the

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**Interpretation:** The interpretation of the IBC emphasizes facilitating settlements to avoid

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**Application:** The court applied this principle by acknowledging the settlement and payment,

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## Parties

- **Judges:** Ch. Mohd Sharief…; Narender Kumar…
- **Appellants:** UPI Polymers…
- **Respondents:** SPML Infra…

## Timeline

- **2021-03-13 — Public Annou…**: Public announcement…
- **2021-03-17 — Settlement Ag…**: Settlement agreement dated 17.03.2021…

## 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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