{"id":219586,"date":"2019-09-16T09:30:34","date_gmt":"2019-09-16T04:00:34","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=219586"},"modified":"2019-09-26T12:44:04","modified_gmt":"2019-09-26T07:14:04","slug":"nclat-appellate-tribunal-exercises-inherent-powers-under-r-11-of-nclat-rules-quashes-cirp-where-settlement-reached-between-parties-before-constitution-of-coc","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/09\/16\/nclat-appellate-tribunal-exercises-inherent-powers-under-r-11-of-nclat-rules-quashes-cirp-where-settlement-reached-between-parties-before-constitution-of-coc\/","title":{"rendered":"NCLAT | Appellate Tribunal exercises inherent powers under R. 11 of NCLAT Rules, quashes CIRP where settlement reached between parties before constitution of CoC"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>National Company Law Appellate Tribunal (NCLAT):\u00a0<\/strong>A Bench of Justice S.J. Mukhopadhaya, Chairperson and Kanthi Narahari, Member (Technical), allowed an appeal seeking to quash the Corporate Insolvency Resolution Process against the Corporate Debtor.<\/p>\n<p style=\"text-align: justify;\">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.<\/p>\n<p style=\"text-align: justify;\">Rajiv Shukla, Shivani Kapoor and Gorang Goyal, Advocates for the appellant submitted that the matter had been settled with the Operation Creditor. It was submitted that the Corporate Debtor had paid the entire amount shown in the Demand Notice before the Committee of Creditors was appointed.<\/p>\n<p style=\"text-align: justify;\">The fact of settlement between the parties before the constitution of Committee of Creditors was accepted by Nikshubha Sethi, Advocate appearing for the Operational Creditor and Syed Sarfaraz Karim, Advocate appearing for the Interim Resolution Professional.<\/p>\n<p style=\"text-align: justify;\">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.[Girish Agarwal v. Lavis Signature Panel (P) Ltd., <a href=\"http:\/\/scconline.com\/DocumentLink\/DTjragdJ\"><b>2019 SCC OnLine NCLAT 490<\/b><\/a>, decided on 13-09-2019]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Company Law Appellate Tribunal (NCLAT):\u00a0A Bench of Justice S.J. Mukhopadhaya, Chairperson and Kanthi Narahari, Member (Technical), allowed an appeal seeking to <\/p>\n","protected":false},"author":8808,"featured_media":153604,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[32458,13031,37567,36427],"class_list":["post-219586","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-committee-of-creditors","tag-inherent-powers","tag-nclat-rules","tag-section-9-ibc"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>NCLAT | Appellate Tribunal exercises inherent powers under R. 11 of NCLAT Rules, quashes CIRP where settlement reached between parties before constitution of CoC | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2019\/09\/16\/nclat-appellate-tribunal-exercises-inherent-powers-under-r-11-of-nclat-rules-quashes-cirp-where-settlement-reached-between-parties-before-constitution-of-coc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NCLAT | Appellate Tribunal exercises inherent powers under R. 11 of NCLAT Rules, quashes CIRP where settlement reached between parties before constitution of CoC\" \/>\n<meta property=\"og:description\" content=\"National Company Law Appellate Tribunal (NCLAT):\u00a0A Bench of Justice S.J. 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