# In the matter of Precision Fasteners Ltd.

> NCLT judgment dated 2023-12-04. Citation: TCN-2023-NCLT-00468. The case involves two Interlocutory Applications (IA 774/2021 and IA 785/2021) filed in…

- **Court:** NCLT
- **Order date:** 4 Dec 2023
- **Citation:** TCN-2023-NCLT-00468
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/precision-fasteners-ltd-05df700c

## Summary

### Background

The case involves two Interlocutory Applications (IA 774/2021 and IA 785/2021) filed in connection with a Corporate Insolvency Resolution Process (CIRP) and subsequent liquidation of M/s Precision Fasteners Limited. IA 774/2021 was filed by Precision Fasteners Employees Union, representing the shop floor workmen, while IA 785/2021 was filed by Precision Fasteners Officers' Association, representing the staff employees. Both applications sought recalculation/re-adjudication of the claims of the member workmen based on a fresh claim submitted on 27.08.2020, arguing that the amounts now claimed are less than those previously claimed. The Corporate Debtor was admitted into CIRP and later liquidation after resolution efforts failed. A settlement agreement dated 01.11.2007

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## Facts

1. Two Interlocutory Applications, IA 774/2021 and IA 785/2021, were filed in connection with the CIRP and liquidation of M/s Precision Fasteners Limited.
2. IA 774/2021 was filed by Precision Fasteners Employees Union, representing shop floor workmen.
3. IA 785/2021 was filed by Precision Fasteners Officers' Association, representing staff employees.
4. Both applications sought recalculation/re-adjudication of claims based on a fresh claim dated 27.08.2020, arguing for lower amounts claimed.
5. The Corporate Debtor was admitted into CIRP and later liquidation after resolution efforts failed.
6. A settlement agreement dated 01.11.2007 existed between the Debtor Company and the Applicant Union, contemplating a VRS scheme and gratuity payment.
7. The settlement was reached

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## Issues and analysis

### Issue 1: Whether the Applicant's members are entitled to a revision of their dues already admitted by the …

**Ratio:** The employment of the Applicant's members ceased on 30.09.2006 in terms of the settlement

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**Reasoning:** The court reasoned that the settlement agreement clearly defined the cessation of

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**Interpretation:** This issue involves interpreting the settlement agreement in conjunction with

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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:** Prabhat…; V.G. B…
- **Appellants:** Precision…
- **Respondents:** M/s Precision…; Asset Reconstructi…
- **Advocates:** Jane…; Ankit L…

## Timeline

- **2006-09-30 — Cessation of E…**: Employment of the Applicant's members…
- **2007-11-01 — Settlement Ag…**: Settlement agreement reached between the Debtor Company and the Applicant Union,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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