If Corporate Debtor defaulted in a settlement which was arrived during pendency of IBC Section 7 application, second petition under Section 7 of IBC on the ground of the settlement agreement is maintainable – Desh Bhushan Jain, Erstwhile Director of Angel Promoters Pvt. Ltd. Vs. Abhay Kumar, IRP of Angel Promoters Pvt. Ltd. and Ors. – NCLAT New Delhi

Hon’ble NCLAT held that:

(i) In the case of Raj Singh Gehlot Vs. Vistra (ITCL) India Ltd. (2022) ibclaw.in 558 NCLAT, the petition under Section 7 was filed on the basis of settlement agreement whereas in the present case, the first petition was not filed on the basis of settlement agreement rather it was filed on the basis of the debt due and default committed by the Corporate Debtor.
(ii) If this kind of tricks, played by the Corporate Debtor with the Financial Creditor are allowed and the plea raised by the Appellant is accepted that the second petition on the ground of settlement agreement is not maintainable then it would give a premium to the unscrupulous Corporate Debtor to get the petition filed under Section 7 withdrawn on the basis of the settlement which was not to be ultimately followed. Definitely, this kind of attitude and act on the part of the Corporate Debtor is not appreciated.

If Corporate Debtor defaulted in a settlement which was arrived during pendency of IBC Section 7 application, second petition under Section 7 of IBC on the ground of the settlement agreement is maintainable – Desh Bhushan Jain, Erstwhile Director of Angel Promoters Pvt. Ltd. Vs. Abhay Kumar, IRP of Angel Promoters Pvt. Ltd. and Ors. – NCLAT New Delhi Read Post »