# In the matter of Gaurav Saran & Anr. Vs. Lakshmi Steels & Anr. Civil Appeal No. 1272-2018

> SC judgment dated 2018-01-25. Citation: TCN-2018-SC-00078. The case involves an appeal against an order passed by the National Company Law Tribunal (NCLT),…

- **Court:** SC
- **Order date:** 25 Jan 2018
- **Citation:** TCN-2018-SC-00078
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/gaurav-saran-anr-vs-lakshmi-steels-anr-civil-appeal-no-1272-2018-b61940ce

## Summary

### Background

The case involves an appeal against an order passed by the National Company Law Tribunal (NCLT), New Delhi, on 27.09.2017. A petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, was admitted by the NCLT. Subsequently, a Memorandum of Understanding (MoU) dated 16.12.2017 was reached between the parties, settling the matter.

## Facts

The case originated from a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, which was admitted by the National Company Law Tribunal (NCLT), New Delhi, on 27.09.2017. Subsequently, the parties entered into a Memorandum of Understanding (MoU) dated 16.12.2017, to settle the matter. The Supreme Court, in its appellate jurisdiction, considered the appeal against the NCLT's order. The key fact is the existence of the MoU, which led to the settlement between the parties after the initiation of insolvency proceedings. The court acknowledged the MoU and its impact on the pending appeal, leading to the setting aside of the NCLT's order. The relevance of the MoU is that it provided a basis for resolving the dispute outside of the formal insolvency

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## Issues and analysis

### Issue 1: Whether the settlement reached between the parties through the Memorandum of Understanding (MoU) …

**Ratio:** The legal principle applied is that settlements reached between parties can be recognized

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**Reasoning:** The court reasoned that since the parties had reached a settlement through the MoU, the

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**Interpretation:** The interpretation is that the court acknowledges and respects the autonomy of

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**Application:** In this specific case, the existence of the MoU provided a valid basis for the

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## Parties

- **Judges:** ROHINTON FALI…; NAVIN S…
- **Appellants:** GAURAV…
- **Respondents:** M/S LAKSHMI…

## Timeline

- **2017-09-27 — NCLT Ord…**: The National Company Law Tribunal (NCLT), New Delhi, admitted a petition under Section 9…
- **2017-12-16 — Memorandum of…**: The parties entered into a Memorandum of…

## 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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