The Delhi High Court permitted the withdrawal of a sugar supply recovery suit, stating that the settlement through an NCLT-approved IBC plan warranted a full refund of court fees.
Delhi HC Allows Withdrawal of ₹16.71 Cr Sugar Supply Recovery Suit
The Delhi High Court has approved the withdrawal of a recovery suit involving ₹16.71 crore in sugar supply, citing a valid settlement under the provisions of the Insolvency and Bankruptcy Code (IBC). The court concluded that the acceptance of the resolution amount as per the NCLT-approved plan constitutes a lawful settlement.
As part of its ruling, the court ordered the complete refund of the court fees paid by the plaintiff, underscoring the significance of the settlement agreement reached under the IBC framework.
This ruling emphasizes the validity of settlements reached through insolvency processes. Legal professionals should take note of this decision, particularly in cases involving recovery suits and the implications of IBC resolutions on court fees.
Citations
- Delhi Recovery Case (2026) 3 DL 202
