NISHANT
NCLAT exercises inherent powers under R. 11 of NCLAT Rules, quashes CIRP where settlement reached between parties before constitution of Committee of Creditors.
NISHANT MEHROTRA 16 Sep 2019

NCLAT exercises inherent powers under R. 11 of NCLAT Rules, quashes CIRP where settlement reached between parties before constitution of Committee of Creditors.

NCLAT :: Appellate Tribunal exercises inherent powers under R. 11 of NCLAT Rules, quashes CIRP where settlement reached between parties before constitution of Committee of Creditors.


The Operation Creditor had filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 which was admitted by the Adjudicating Authority and Corporate Insolvency Resolution Process was initiated against the Corporate Debtor.


Appellant submitted that the matter had been settled with the Operation Creditor and the Corporate Debtor had paid the entire amount shown in the Demand Notice before the Committee of Creditors was appointed.


In view of the admitted settlement reached between the parties, the Appellate Tribunal exercised inherent powers under Rule 11 of the National Company Law Appellate Tribunal Rules, 2016 and set aside the impugned order whereby the Corporate Insolvency Resolution Process was initiated against the Corporate Debtor. The application under Section 9 IBC filed by the Operational Creditor was dismissed as withdrawn.


Case: Girish Agarwal v. Lavis Signature Panel (P) Ltd., Company Appeal (AT) (Insolvency) No. 847 of 2019

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