# 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-00696. 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-00696
- **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-2019-667cfa56

## 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 a settlement agreement dated 06.10.2022. 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 the settlement agreement.

## 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 reached a settlement agreement dated 06.10.2022. IA No. 1361/2022 was filed by the corporate debtor to place the settlement agreement on record. IA No. 1359/2022 was filed by the IRP for withdrawal of the petition, stating that the IRP fees and expenses had been paid and no CoC had been constituted. The settlement agreement is a key fact because 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 Nos. 1361/2022 and 1359/2022 should be allowed, and the settlement agreement dated …

**Ratio:** The court has the power to allow applications for recording settlement agreements and

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**Reasoning:** The court considered the settlement agreement dated 06.10.2022 executed between the

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**Interpretation:** The legal issue involves the interpretation of the NCLT Rules and IBBI

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**Application:** The court applied the ratio to the specific facts of the case, where 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/…
- **2022-10-06 — Settlement Ag…**: Settlement agreement dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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