2017 (11) TMI 1763 - SCH - Companies Law

Compromise to take effect after admission of the insolvency petition - Held that As appellant and the respondent both agree that the matter has since been settled amicably between the parties. National Company Law Appellate Tribunal prima facie could not avail of the inherent powers recognised by Rule 11 of the National Law Appellate Tribunal Rules, 2016 to allow a compromise to take effect after admission of the insolvency petition. We are of the view that instead of all such orders coming to the Supreme Court as only the Supreme Court may utilise its powers under Article 142 of the Constitution of India, the relevant Rules be amended by the competent authority o as to include such inherent powers. This will obviate unnecessary appeals being filed before this Court in matters where such agreement has been reached. On the facts of the present case, we take on record the settlement between the parties and set aside the NCLAT order. Appeal is allowed in the aforesaid terms.

Summary

The Supreme Court allowed the appeal as parties settled amicably, setting aside the NCLAT order. The Court suggested amending rules to include inherent powers to avoid unnecessary appeals. The Ministry of Law & Justice was directed to be informed of the order.