# In the matter of Deneb Automotives Pvt. Ltd. IA Nos.1359 & 1361-2022 In CP (IB) No. 534-Chd-Hry-2019

> NCLT judgment dated 2022-10-18. Citation: TCN-2022-NCLT-00703. The case involves CP (IB) No. 534/Chd/Hry/2019, which was admitted under Section 9 of the…

- **Court:** NCLT
- **Order date:** 18 Oct 2022
- **Citation:** TCN-2022-NCLT-00703
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/deneb-automotives-pvt-ltd-ia-nos1359-1361-2022-in-cp-ib-no-534-chd-hry-2019-0be83a8d

## Summary

### Background

The case involves CP (IB) No. 534/Chd/Hry/2019, which was admitted under Section 9 of the Insolvency and Bankruptcy Code, 2016. IA No. 1361/2022 was filed by the corporate debtor through the Suspended Board of Director under Section 60(5) read with Rule 11 of the NCLT Rules, 2016, to place on record the settlement agreement dated 06.10.2022 executed between the parties and for restoration of management of the corporate debtor. IA No. 1359/2022 was filed by the IRP under Rule 11 of the NCLT Rules 2016 read with Regulation 30A of IBBI Regulations, 2016 for withdrawal of the petition, based on a settlement agreement dated 06.10.2022.

## Facts

M/s Metal Trading Company, the operational creditor, initiated insolvency proceedings against M/s Deneb Automotives Pvt. Ltd., the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted. Subsequently, the parties entered into a settlement agreement dated 06.10.2022. IA No. 1361/2022 was filed by the corporate debtor to place the settlement agreement on record and restore management. IA No. 1359/2022 was filed by the IRP for withdrawal of the petition, stating that the IRP fee of Rs.2,72,000/- had been paid and no CoC had been constituted. The settlement agreement is a key fact, as it forms the basis for the withdrawal of the insolvency petition and the discharge of the corporate debtor.

## Issues and analysis

### Issue 1: Whether IA No. 1361/2022 should be allowed to place the settlement agreement on record and restore …

**Ratio:** The ratio is based on the principle that parties are free to settle their disputes, and

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**Reasoning:** The court reasoned that the settlement agreement reached between the parties indicates a

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**Interpretation:** The interpretation involves recognizing the importance of settlement agreements

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**Application:** The court applied this ratio by allowing IA No. 1361/2022, thereby placing the

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## Parties

- **Judges:** SUBRATA KUM…; Harnam Singh…
- **Appellants:** M/s Metal Trading…
- **Respondents:** M/s Deneb…

## Timeline

- **2019-01-01 — CP (IB)…**: CP (IB) No. 534/Chd/Hry/20…
- **2022-10-06 — Settlement Ag…**: Settlement agreement dated…

## 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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