# In the matter of Sripathi Paper and Boards Private Limited CP(IB)-74(CHE)2021

> NCLT judgment dated 2021-12-09. Citation: TCN-2021-NCLT-00220. The case involves a corporate insolvency resolution process under the IBC, where Devendran Coal…

- **Court:** NCLT
- **Order date:** 9 Dec 2021
- **Citation:** TCN-2021-NCLT-00220
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sripathi-paper-and-boards-private-limited-cpib-74che2021-71ef450d

## Summary

### Background

The case involves a corporate insolvency resolution process under the IBC, where Devendran Coal International Private Limited filed a petition against Sripathi Paper & Boards Private Limited. The parties reached a settlement and filed a De Novo Memorandum of Compromise with the NCLT.

## Facts

Devendran Coal International Private Limited initiated a corporate insolvency resolution process against Sripathi Paper & Boards Private Limited. To resolve the matter, both parties agreed to a settlement and formalized it in a De Novo Memorandum of Compromise. As part of the settlement, Sripathi Paper & Boards Private Limited committed to paying a specific amount to Devendran Coal International Private Limited. Sripathi Paper & Boards Private Limited issued a series of cheques with varying dates and amounts, totaling Rs. 3,30,80,143/-, to Devendran Coal International Private Limited. The Memorandum of Compromise included a clause allowing Devendran Coal International Private Limited to revive the application if any of the payment terms were breached. The

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## Issues and analysis

### Issue 1: Whether the Memorandum of Compromise filed by the parties should be taken on record and the …

**Ratio:** The legal principle applied is that parties are free to settle their disputes, and courts

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**Reasoning:** The court reasoned that the parties had arrived at a settlement, documented in the

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**Interpretation:** The interpretation involves recognizing the validity and enforceability of

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** S. Ramath…; B. Anil…
- **Appellants:** Devendran Coal…
- **Respondents:** Sripathi Paper &…

## Timeline

- **2021-11-09 — Earlier Tribun…**: Reference to an earlier…
- **2021-12-09 — Hearing…**: Hearing held on…

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