{"id":322814,"date":"2024-05-23T16:30:47","date_gmt":"2024-05-23T11:00:47","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=322814"},"modified":"2024-06-20T17:59:49","modified_gmt":"2024-06-20T12:29:49","slug":"nclt-dismisses-corporate-insolvency-resolution-proceedings-against-syska-led-lights-after-settlement-scc-times","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2024\/05\/23\/nclt-dismisses-corporate-insolvency-resolution-proceedings-against-syska-led-lights-after-settlement-scc-times\/","title":{"rendered":"NCLT approves withdrawal of insolvency resolution proceedings against Syska LED Lights after settlement"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">National Company Law Tribunal, Mumbai:<\/span> In an application seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against Syska LED Lights Pvt. Ltd. (Corporate Debtor), a division bench comprising of Prabhat Kumar (Technical Member) and V. G. Bisht, J., (Judicial Member), while recognising the settlement between the parties, dismissed the CIRP proceedings. The NCLT directed that the control of Syska LED Lights Pvt. Ltd. is to be returned to its management, and all related applications are disposed of.<\/p>\n<p style=\"margin-bottom: 3%;\">In the instant matter, the petitioner, proprietor of M\/s. N. J. Electronics (Operational Creditor), sought to initiate the CIRP against respondent-Syska LED Lights Pvt. Ltd. (Corporate Debtor). The Operational Creditor is engaged in manufacturing various electronic products and had a business relationship with the Corporate Debtor, supplying products such as transformers and inductors. The business ran smoothly until December 2022. Subsequently, the Corporate Debtor delayed or stopped payments and issued 11 post-dated cheques (PDCs), 8 of which were dishonored due to insufficient funds. On 01-11-2023, the Operational Creditor sent a demand notice to the Corporate Debtor under Section 8 of the IBC. The Corporate Debtor replied on 11-11-2023 but failed to clear the dues. The total claim amount by the Operational Creditor, including interest, was Rs. 1,26,75,456. On 22-04-2024, the Corporate Debtor expressed willingness to settle by offering two demand drafts of Rs. 10 lakhs each, which the Operational Creditor declined based on the Corporate Debtor&#8217;s past conduct.<\/p>\n<p style=\"margin-bottom: 3%;\">The NCLT found that the debt and default were established and no dispute regarding the debt in default was raised. Consequently, the NCLT, vide order dated 07-05-2024, initiated the CIRP against Syska LED Lights Pvt. Ltd., and appointed an Interim Resolution Professional (IRP) to oversee the process. The NCLT directed the Operational Creditor to deposit Rs. 3,00,000 with the IRP to cover public notice expenses.<\/p>\n<p style=\"margin-bottom: 3%;\">The NCLT noted that on 07-05-2024, a settlement agreement was executed between the Financial Creditor and the Corporate Debtor and a joint application was submitted by both parties, indicating that the dues had been settled. The NCLT held that in view of the settlement agreement, Syska LED Lights Pvt. Ltd. is taken out of the CIRP, directed the Resolution Professional to hand over control of the Syska LED Lights Pvt. Ltd. back to the Corporate Debtor, if it had been taken over and dismissed the company petition as withdrawn. All pending applications were deemed infructuous and no costs were imposed.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\"><span style=\"font-style: italic;\">Neeraj Singh<\/span> v. <span style=\"font-style: italic;\">SYSKA LED Lights (P) Ltd.<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/xDxG18XI\" target=\"_blank\" rel=\"noopener\">2024 SCC OnLine NCLT 2717<\/a>, order dated 09-05-2024<\/span>]<\/p>\n<hr\/>\n<p>Advocates who appeared in this case:<\/p>\n<p style=\"margin-left: 18pt;\">Mr. Anuj Solanki, Counsel for the Operational Creditor<\/p>\n<p style=\"margin-left: 18pt;\">Mr. Umang Mehta, Counsel for the Corporate Debtor<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">The NCLT directed the Resolution Professional to hand over control of Syska LED Lights Pvt. Ltd. back to the Corporate Debtor, if it had been taken over.<\/p>\n","protected":false},"author":67514,"featured_media":315817,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[43781,22814,69035,41672,3539,12521,69034,3587,69036],"class_list":["post-322814","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-cirp","tag-corporate-insolvency-resolution-process","tag-justice-v-g-bisht","tag-mumbai","tag-National_Company_Law_Tribunal","tag-nclt","tag-prabhat-kumar-technical-member","tag-settlement","tag-syska-led-lights"],"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>NCLT dismisses corporate insolvency resolution proceedings against Syska LED Lights after settlement | SCC Times<\/title>\n<meta name=\"description\" content=\"NCLT dismissed corporate insolvency resolution proceedings against Syska LED Lights after settlement,\" \/>\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\/2024\/05\/23\/nclt-dismisses-corporate-insolvency-resolution-proceedings-against-syska-led-lights-after-settlement-scc-times\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"NCLT approves withdrawal of insolvency resolution proceedings against Syska LED Lights after settlement\" \/>\n<meta property=\"og:description\" content=\"NCLT dismissed corporate insolvency resolution proceedings against Syska LED Lights after settlement,\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.scconline.com\/blog\/post\/2024\/05\/23\/nclt-dismisses-corporate-insolvency-resolution-proceedings-against-syska-led-lights-after-settlement-scc-times\/\" \/>\n<meta property=\"og:site_name\" content=\"SCC Times\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/scc.online\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-05-23T11:00:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-20T12:29:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/resolution-plan.png\" \/>\n\t<meta property=\"og:image:width\" content=\"886\" \/>\n\t<meta property=\"og:image:height\" content=\"590\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Ritu\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"NCLT approves withdrawal of insolvency resolution proceedings against Syska LED Lights after settlement\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ritu\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2024\\\/05\\\/23\\\/nclt-dismisses-corporate-insolvency-resolution-proceedings-against-syska-led-lights-after-settlement-scc-times\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2024\\\/05\\\/23\\\/nclt-dismisses-corporate-insolvency-resolution-proceedings-against-syska-led-lights-after-settlement-scc-times\\\/\"},\"author\":{\"name\":\"Ritu\",\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/#\\\/schema\\\/person\\\/392f265bae2f48f0f0d02b8e0e9015b9\"},\"headline\":\"NCLT approves withdrawal of insolvency resolution proceedings against Syska LED Lights after settlement\",\"datePublished\":\"2024-05-23T11:00:47+00:00\",\"dateModified\":\"2024-06-20T12:29:49+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2024\\\/05\\\/23\\\/nclt-dismisses-corporate-insolvency-resolution-proceedings-against-syska-led-lights-after-settlement-scc-times\\\/\"},\"wordCount\":451,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/post\\\/2024\\\/05\\\/23\\\/nclt-dismisses-corporate-insolvency-resolution-proceedings-against-syska-led-lights-after-settlement-scc-times\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.scconline.com\\\/blog\\\/wp-content\\\/uploads\\\/2024\\\/03\\\/resolution-plan.webp\",\"keywords\":[\"CIRP\",\"corporate insolvency resolution process\",\"Justice V. 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