# In the matter of Aban Offshore Ltd.

> NCLT judgment dated 2022-09-12. Citation: TCN-2022-NCLT-01088. The case involves an application under the Insolvency and Bankruptcy Code (IBC), specifically…

- **Court:** NCLT
- **Order date:** 12 Sept 2022
- **Citation:** TCN-2022-NCLT-01088
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/aban-offshore-ltd-9f6825b3

## Summary

### Background

The case involves an application under the Insolvency and Bankruptcy Code (IBC), specifically Section 7 Rule 4, filed by Central Bank of India against Aban Offshore Ltd. The application was filed as IBA/404/2020. During the proceedings, a memo was filed stating that the corporate debtor, Aban Offshore Ltd, had settled the outstanding amount under a One-Time Settlement (OTS) scheme. Consequently, the financial creditor, Central Bank of India, sought to withdraw the application.

## Facts

Central Bank of India filed an application (IBA/404/2020) against Aban Offshore Ltd under Section 7 Rule 4 of the Insolvency and Bankruptcy Code (IBC), 2016. During the proceedings, a memo (S.R.No.5332 dated 06.09.2022) was filed stating that Aban Offshore Ltd, the corporate debtor, had settled the outstanding amount under a One-Time Settlement (OTS) scheme. As a result of this settlement, Central Bank of India, the financial creditor, sought to withdraw the application. The NCLT considered the memo and the request for withdrawal.

## Issues and analysis

### Issue 1: Whether the application IBA/404/2020 should be dismissed as withdrawn, given the settlement reached …

**Ratio:** When a corporate debtor and a financial creditor reach a settlement outside of court, the

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**Reasoning:** The court reasoned that since the corporate debtor had settled the outstanding amount

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**Interpretation:** This interpretation acknowledges the principle that parties are free to settle

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**Application:** In this case, the ratio was applied to the specific facts where Aban Offshore

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## Parties

- **Judges:** BACHU VENKAT…; SAMEER…
- **Appellants:** Central Bank of…
- **Respondents:** Aban Offsho…
- **Advocates:** M.L. Ga…; Adit…

## Timeline

- **2022-09-06 — Memo Fil…**: A memo (S.R.No.5332) was filed stating that the corporate debtor had settled the…
- **2022-09-12 — Hearing…**: Hearing held on 12-09-2022 at 10.30…

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