2025 (3) TMI 1255 - SCH - IBC

Admission of Section 9 Insolvency and Bankruptcy Code (IBC) petition against the Corporate Debtor - settlement arrived between the parties - HELD THAT - There has been a settlement between the parties. In view of the aforesaid nothing remains further to be done - The impugned order passed by the NCLAT is hereby set aside. Appeal disposed off.

Summary

The Supreme Court's judgment in this case involves an appeal from the National Company Law Appellate Tribunal (NCLAT), which had affirmed the National Company Law Tribunal's (NCLT) order admitting a Section 9 Insolvency and Bankruptcy Code (IBC) petition against the Corporate Debtor. The appeal was rendered moot due to a settlement between the parties. The Operational Creditor had initially filed a petition under Section 9 of the IBC, claiming a total amount of Rs. 4,75,90,468.16, which included a principal amount of Rs. 2,19,49,432.60 and interest of Rs. 2,56,41,036.00.The NCLT had initiated a Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, which was contested by the appellant at the NCLAT. Despite an interim order halting further steps in the CIRP, the NCLAT ultimately dismissed the appeal. Subsequently, the parties reached a settlement, with the Corporate Debtor agreeing to pay the Operational Creditor Rs. 2,80,00,000 and another creditor, DARCL Logistics, Rs. 21,00,000.The Supreme Court set aside the NCLAT's order in light of the settlement, noting that "nothing remains further to be done." The Court also addressed the CIRP costs, with the Corporate Debtor agreeing to cover these expenses. The appeal and any pending applications were disposed of accordingly. The judgment allows any financial creditors not party to the settlement to pursue their claims in the appropriate forum.