Breach of Settlement Agreement terms Not A Ground to Trigger CIRP

Bajaj Rubber Company Private Limited Vs Saraswati Timber Private Limited (NCLT Delhi)

NCLT held that breach of the terms and conditions of payment according to a Settlement Agreement does not come under the purview of the Operational Debt as defined under the IBC, 2016 and it cannot be a ground to trigger CIRP against the Corporate Debtor.

FULL TEXT OF THE NCLT DELHI JUDGMENT/ORDER

The present IA. No. 3247 of 2022 is preferred by M/s. Bajaj Rubber Company Private Limited (hereinafter referred to as the ‘Applicant’) filed through Sh. Sahit Bajaj, Director of the Company under Rule 11 of the NCLT Rules, 2016 seeking the following reliefs :

“1. Allow the application and revive the CP-IB/ 1333/ ND/ 2018 and may kindly proceed in accordance with IBC, 2016 as amended up to date, and or;

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