# In the matter of Angel Promoters Pvt. Ltd.

> NCLT judgment dated 2023-12-20. Citation: TCN-2023-NCLT-00119. The application was filed by M/s. Raj Kumar Tayal HUF & others to initiate corporate insolvency…

- **Court:** NCLT
- **Order date:** 20 Dec 2023
- **Citation:** TCN-2023-NCLT-00119
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/angel-promoters-pvt-ltd-ad06bdb8

## Summary

### Background

The application was filed by M/s. Raj Kumar Tayal HUF & others to initiate corporate insolvency resolution process (“CIRP”) against M/s. Angel Promoters Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code 2016 (“the Code”). The financial creditors agreed to give financial facility to the tune of Rs. 3,25,00,000/- at rate of interest of 8% per annum to the Corporate Debtor. The Corporate Debtor undertook to repay the said loan within one month from the date of demand by the Financial Creditors. The Financial Creditors made a demand of the said loan, on the due date, the Financial Creditors informed the Corporate Debtor that they were depositing cheque no. 140851 for Rs. 25,00,000/- towards payment of interest, however, the Corporate Debtor pleaded with

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## Facts

M/s. Raj Kumar Tayal HUF & others filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate CIRP against M/s. Angel Promoters Pvt. Ltd. The financial creditors had extended a financial facility of Rs. 3,25,00,000/- to the corporate debtor at an interest rate of 8% per annum, with the understanding that the loan would be repaid within one month of demand. When the financial creditors demanded repayment, the corporate debtor requested that a cheque for Rs. 25,00,000/- towards interest payment not be encashed due to insufficient funds. The financial creditors agreed. Subsequently, the financial creditors filed a Section 7 petition, which was later withdrawn following a settlement agreement dated 26.07.2018. As of 31.08.2019, Rs.

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## Issues and analysis

### Issue 1: Whether the settlement agreement bars the Financial …

**Ratio:** A settlement agreement does not bar the Financial Creditors from filing the present

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**Reasoning:** The Corporate Debtor has itself admitted that the settlement agreement was for settling

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**Interpretation:** The interpretation of settlement agreements in insolvency proceedings must not

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**Application:** In this case, the Corporate Debtor's argument that the settlement agreement

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## Parties

- **Judges:** SHRI. P.S.N.…; SHRI. RAHUL…
- **Appellants:** M/S. RAJ KUMAR…
- **Respondents:** M/s. ANGEL…

## Timeline

- **2018-07-26 — Settlement Ag…**: Financial Creditors and Corporate Debtor…
- **2018-07-27 — Disposal of P…**: Tribunal disposed of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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