# In the matter of Opto Circuits (India) Ltd. I.A. No. 249-2022 in CP (IB) No. 199-BB-2018

> NCLT judgment dated 2022-09-19. Citation: TCN-2022-NCLT-01034. The case involves an application (I.A No. 249/2022) filed by ICICI Bank Limited, the Financial…

- **Court:** NCLT
- **Order date:** 19 Sept 2022
- **Citation:** TCN-2022-NCLT-01034
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/opto-circuits-india-ltd-ia-no-249-2022-in-cp-ib-no-199-bb-2018-cdccace9

## Summary

### Background

The case involves an application (I.A No. 249/2022) filed by ICICI Bank Limited, the Financial Creditor, seeking to restore/resume the Corporate Insolvency Resolution Process (CIRP) proceedings against M/s. Opto Circuits (India) Ltd, the Corporate Debtor. The CIRP was initially initiated under C.P (IB) No. 199/BB/2018. The CIRP proceedings were disposed of earlier due to a settlement between the parties. However, the Financial Creditor filed an appeal before NCLAT after the Corporate Debtor defaulted on the terms of the settlement. NCLAT modified the earlier order, allowing the Financial Creditor to seek revival/restoration of the CIRP proceedings in case of default.

## Facts

ICICI Bank Limited initiated CIRP against M/s. Opto Circuits (India) Ltd under C.P (IB) No. 199/BB/2018. An order dated 18.03.2020 terminated the CIRP proceedings due to a settlement between the parties, as per an order dated 17.08.2020 in I.A No. 273 of 2020. The Corporate Debtor defaulted on the terms of the One Time Settlement (OTS) letter dated 10.07.2020. ICICI Bank filed an appeal before the NCLAT, Chennai Bench, in Company Appeal (AT) (CH) (Insolvency) no. 146 of 2021. The NCLAT modified the earlier order on 28.04.2022, allowing ICICI Bank to seek revival/restoration of the CIRP proceedings in case of default in the settlement agreement. ICICI Bank then filed I.A No. 249 of 2022 seeking restoration of the original C.P.

## Issues and analysis

### Issue 1: Whether the CIRP proceedings initiated against the Corporate Debtor can be restored based on the …

**Ratio:** The ratio is based on the principle that when a settlement agreement is breached, and a

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**Reasoning:** The court reasoned that the NCLAT's order specifically allowed the Financial Creditor to

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**Interpretation:** The interpretation hinges on the NCLAT's modification of the earlier order. The

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**Application:** The ratio and reasoning are applied to the specific facts of the case, where

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## Parties

- **Judges:** SH. KISHORE…; SH. MANOJ KUMAR…
- **Appellants:** ICICI Bank…
- **Respondents:** M/s. Opto…

## Timeline

- **2018-08-10 — Initial CIRP I…**: CIRP initiated against the Corporate…
- **2020-03-18 — CIRP Termi…**: CIRP proceedings terminated due…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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