Whether delay in payment of instalments constituted default under the terms of the Settlement Agreement leading to triggering of the revival of the old application or filing of a fresh application under Section 9 of the IBC – Maldar Barrels Pvt. Ltd. Vs. Pearson Drums & Barrels Pvt. Ltd – NCLAT New Delhi
NCLAT holds that since time was not of essence in the Settlement. Whether any compensation should accrue to the Appellant or not is not a matter for adjudication in this appeal. Also whether Section 62 of the Contract Act, 1872 will apply in the present case, which would change the contract to a new one is not relevant in the present appeal. If the Appellant has any grievance on this account, he could certainly approach the appropriate forum for redressal on this issue which relates to the enforcement of the Settlement Agreement and whether it will be substituted by a new one, if it so wishes. From the observation of facts presented in the case, it is held that a fresh application under Section 9 of IBC cannot be triggered in accordance with Clause 11 of the Settlement Agreement.
