2019 (8) TMI 1736 - Tri - Insolvency and Bankruptcy

Settlement agreement - as per the Terms of Settlement, the debtor had undertaken to make a payment of Rupees One Crore on or before 31.10.2019 - HELD THAT - Considering that an amount of Rupees Thirty Lakhs as per the Deed of Settlement has been received by the Petitioner, this Bench is of the view that the Petition be disposed of as settled amongst the parties with the liberty that in case of any default matter be reported to this Bench. This Petition is disposed of as settled with a liberty that in case of defiance on the part of the Respondent/debtor the matter can be reported to this Bench.

Summary

Issues: Settlement agreement terms, disposal of petition as settled, liberty to report default

In this judgment by the National Company Law Tribunal, Mumbai Bench, the issue revolves around a settlement agreement between the parties. The petitioner informed the tribunal about a Terms of Settlement dated 23.07.2019, where the debtor agreed to make a payment of Rupees One Crore by 31.10.2019. However, the petitioner had already received Rupees Thirty Lakhs as per the Deed of Settlement. The tribunal, considering the partial payment received, decided to dispose of the petition as settled amongst the parties. The judgment includes the schedule of payment obligations as per the settlement agreement, detailing the amounts and timelines for payments. The tribunal granted liberty to report the matter back to the bench in case of any default by the respondent/debtor.

The tribunal acknowledged the partial payment made by the debtor as per the Deed of Settlement and decided that the petition could be disposed of as settled between the parties. The judgment highlighted the specific amounts to be paid by the debtor, including Rupees Thirty Lakhs immediately upon signing the settlement, Rupees One Crore by October 31, 2019, and Rupees Two Crore Twenty Lacs in monthly installments starting from December 15, 2019. The repayment schedule was outlined in detail, specifying the monthly amounts, interest rate, and grace period for payments. The tribunal emphasized that the petition was being disposed of as settled, with provisions for reporting any default by the debtor back to the bench for further action.

Overall, the judgment concluded by disposing of the petition as settled based on the terms of the settlement agreement and the partial payment already received by the petitioner. The tribunal provided the liberty to report any default on the part of the debtor to the bench for appropriate action. The detailed schedule of payment obligations outlined in the settlement agreement was crucial in determining the resolution of the petition and ensuring compliance with the agreed terms between the parties.