# In the matter of UTC Softech Pvt. Ltd. (IB)-1100(PB)-2018

> NCLT judgment dated 2019-02-06. Citation: TCN-2019-NCLT-04987. The case involves an application filed under Rule 11 of the NCLT Rules, 2016, seeking the…

- **Court:** NCLT
- **Order date:** 6 Feb 2019
- **Citation:** TCN-2019-NCLT-04987
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/utc-softech-pvt-ltd-ib-1100pb-2018-495fd37b

## Summary

### Background

The case involves an application filed under Rule 11 of the NCLT Rules, 2016, seeking the disposal of C.P. No. (IB)-1100(PB)/2018 and the closure of the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The Tribunal had previously admitted a company petition and initiated the CIRP in the matter of Noble Buildtech LLP v. UTC Softech Pvt. Ltd. The application is supported by affidavits from both parties. The Supreme Court has established that CIRP can be discontinued based on a settlement between the parties, obviating the need to go before the Committee of Creditors (CoC) as per Section 12A of the Insolvency & Bankruptcy Code.

## Facts

Noble Buildtech LLP initiated a Corporate Insolvency Resolution Process (CIRP) against UTC Softech Pvt. Ltd. An application was filed under Rule 11 of the NCLT Rules, 2016, to dispose of C.P. No. (IB)-1100(PB)/2018 and close the CIRP. The basis for this application was a settlement between the parties. The Interim Resolution Professional (IRP) had issued a public notice and received 24 claims. The IRP's expenses were settled, with the Corporate Debtor paying Rs. 3,15,000/- after deducting TDS of Rs. 35,000/-. The application was supported by affidavits from both parties. The Tribunal considered the Supreme Court's judgment in Swiss Ribbons Pvt. Ltd. & Anr. v. Union of India & Ors., which allows for the discontinuation of CIRP based on a settlement between the

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process can be closed based on a settlement between the …

**Ratio:** The Supreme Court has established that Corporate Insolvency Resolution Process can be

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**Reasoning:** The Tribunal relies on the Supreme Court's observation in the Swiss Ribbons case, which

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**Interpretation:** The interpretation is that the settlement between parties can be a valid ground

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**Application:** In this case, the parties have reached a settlement, and the CoC has not been

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## Parties

- **Judges:** M. M. K…; Pradeep R.…
- **Appellants:** Noble Buildtech…
- **Respondents:** UTC Softech Pvt.…
- **Advocates:** U.K. Chau…; Abhishek…; +1 more

## Timeline

- **2010-01-17 — Admission of Company…**: The Tribunal admitted company petition No. (IB)-1100(PB)/2018 and initiated the Corporate…
- **2019-01-17 — Order initiat…**: Order dated 17.01.2019 initiating Corporate Insolvency Resolution Process against 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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