# In the matter of Barkat Cranes & Equipments Private Limited

> NCLT judgment dated 2024-03-14. Citation: TCN-2024-NCLT-02041. The case involves a settlement agreement tendered jointly by the Operational Creditor (OC) and…

- **Court:** NCLT
- **Order date:** 14 Mar 2024
- **Citation:** TCN-2024-NCLT-02041
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/barkat-cranes-equipments-private-limited-757bf5e4

## Summary

### Background

The case involves a settlement agreement tendered jointly by the Operational Creditor (OC) and Corporate Debtor (CD). The matter was submitted as settled, with a request to withdraw the Corporate Petition (C.P.).

## Facts

The Operational Creditor (OC) and Corporate Debtor (CD) jointly submitted a settlement agreement to the court, indicating that the matter had been resolved. They requested that the Corporate Petition (C.P.) be withdrawn. The court considered the settlement agreement and heard arguments from both counsels. The settlement agreement contained specific conditions, particularly in paragraphs 1 and 3, regarding the payment of the default amount. The court allowed the withdrawal of the C.P. but granted the OC the right to revive the petition if the settlement terms were not met. The CD was also given the right to raise the matter if the settlement agreement was violated. The main C.P. was disposed of as withdrawn.

## Issues and analysis

### Issue 1: Whether the Corporate Petition (C.P.) should be allowed to be withdrawn based on the settlement …

**Ratio:** A settlement agreement between parties can form the basis for the withdrawal of a

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**Reasoning:** The court considered the joint submission of the settlement agreement by both the OC and

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**Interpretation:** This reflects the principle that courts encourage settlement of disputes to

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**Application:** The court applied this principle by allowing the withdrawal of the C.P. after

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## Parties

- **Judges:** SANJIV…; K. R. SAJI…
- **Appellants:** Inox Wind L…
- **Respondents:** Barkat Cranes &…

## Timeline

- **2024-03-14 — Order Sheet of…**: Order sheet of hearing…

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