(1.) A brief history of the case requires to be noted. M/s. Pacquick Industries Ltd., hereinafter referred to as the "Company", had borrowed a sum of Rs. 11 crores (approximately) from M/s. Pradeshya Industrial and Investment Corporation of UP Ltd., Lucknow, hereinafter referred to as "PICUP", for the purpose of its business. The Company had obtained the loan by mortgage of the property at B-54, Sector-57, Noida, U.P. along with the plant and machinery. The title deeds relating to the property were handed over to PICUP. Soon the Company ran into rough weather and was unable to re-pay the amount to PICUP. The Company had also borrowed a sum of Rs. 62,53,375/- from one Darshan Khurana, sole proprietor of Pioneer Multifilms of Delhi. The Company was unable to re-pay the aforesaid amount also due to falling business. In these circumstances, Darshan Khurana filed Company Petition No.194/2006 for winding up of the Company under Section 433(e) read with Section 434 (1)(a) of the Companies Act, 1956.
(2.) In order to help the Company tide over its financial difficulties and revive its business, a one-time settlement ("OTS", for short) was entered into between PICUP and the Company under which the debt to PICUP was settled at Rs. 2,29,85,000/-. The understanding was that on payment of the aforesaid sum, PICUP would return the title deeds to the Company and the Company would strive to revive its business.
(3.) In the meantime a joint application under Order 23, Rule 3 of the CPC was filed in C.A. No.10/2011 recording a settlement arrived at between Darshan Khurana and the Company. The brief terms of the settlement were that Darshan Khurana will pay the amount of Rs. 2,29,85,000/- to PICUP and when the company obtains the title deeds from PICUP, the property would be sold to Darshan Khurana. C.A. No.11/2011 was an application filed for impleadment of PICUP in the settlement proceedings.