# In the matter of Aakash Dhanhkar Erstwhile Director of Dev Automates Pvt. Ltd. vs. Dev Automates (P) Ltd. & Anr.

> NCLAT judgment dated 2023-08-03. Citation: TCN-2023-NCLAT-00311. This is an appeal filed against the order of the Adjudicating Authority dated 01.05.2023,…

- **Court:** NCLAT
- **Order date:** 3 Aug 2023
- **Citation:** TCN-2023-NCLAT-00311
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/aakash-dhanhkar-erstwhile-director-of-dev-automates-pvt-ltd-vs-dev-automates-73c32953

## Summary

### Background

This is an appeal filed against the order of the Adjudicating Authority dated 01.05.2023, which admitted a Section 9 application filed by Respondent No. 2. An interim order was passed by the Tribunal on 15.05.2023. The appellant sought to settle the dispute with the Operational Creditor and requested the liberty to file an application for acceptance of certain documents not previously before the Adjudicating Authority. The respondent's counsel stated that the IRP had already issued publication and claims were under collation, but the CoC had not been constituted.

## Facts

The appellant, Aakash Dhanhkar, filed an appeal against the Adjudicating Authority's order dated 01.05.2023, which admitted a Section 9 application filed by Respondent No. 2. The appellant expressed a desire to settle the dispute with the Operational Creditor and sought to introduce additional documents. A settlement agreement was reached between the Operational Creditor and the Corporate Debtor on 15.07.2023, with part payment already made. The IRP had incurred expenses of Rs. 1 lakh, which had not been paid. The Adjudicating Authority had directed payment of Rs. 1 lakh. The IRP's total expenses were Rs. 3 lakhs, agreed to be paid equally by the Operational Creditor and Corporate Debtor. The relevance of the settlement agreement is that it formed the basis for closing

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## Issues and analysis

### Issue 1: Whether the CIRP should be continued given the settlement agreement between the Operational …

**Ratio:** When a settlement is reached between the parties, and the purpose of continuing the CIRP

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**Reasoning:** The court reasoned that since the Operational Creditor and Corporate Debtor had settled

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**Interpretation:** This interprets the principle that CIRP is a mechanism for resolution, and when

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**Application:** The settlement agreement between the Operational Creditor and Corporate Debtor

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Aakash Dh…
- **Respondents:** Dev Automates (P)…

## Timeline

- **2023-05-01 — Order of Adjudicating…**: The Adjudicating Authority admitted Section 9…
- **2023-05-15 — Interim Order by…**: An interim order was…

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