Case Note & Summary
The dispute arose between R K Enterprises, represented by its proprietor Rakesh Kumar, and Super City Developers Pvt. Ltd. regarding an alleged default leading to a claim of Rs. 1,04,27,102 under Section 9 of the Insolvency and Bankruptcy Code, 2016. The company petition was filed on 24.05.2024, with the date of default noted as 15.12.2023. The National Company Law Tribunal dismissed the petition on 13.06.2025, prompting the appeal. During the proceedings, the parties engaged in negotiations, resulting in a settlement agreement dated 13.04.2026, where the respondent agreed to pay a total of Rs. 1,10,00,000 in four installments. The appellant reserved the right to initiate proceedings in case of any breach of the payment terms. By 01.07.2026, the appellant confirmed receipt of all payments, leading to a unanimous statement from both parties that no disputes remained. Consequently, the tribunal found that the appeal had become infructuous and dismissed it in accordance with the settlement agreement, closing all related applications.
Headnote
A) Insolvency and Bankruptcy - Operational Creditor - Dismissal of Appeal - Insolvency and Bankruptcy Code, 2016, Section 9 - The appeal was dismissed as the parties reached a settlement agreement, and the appellant confirmed receipt of all agreed payments, indicating no further disputes. Held that the appeal had become infructuous due to the fulfillment of the settlement terms (Paras 9-11).
Issue of Consideration
Whether the company appeal should be dismissed following the settlement agreement between the parties.
Final Decision
The company appeal was dismissed as the settlement agreement was fulfilled, and no cause remained for the appellant to pursue the appeal under Section 9 of the I&B Code.
Law Points
- Operational Creditor
- I&B Code
- Settlement Agreement
- Cheque Dishonor
- Company Appeal
