# In the matter of Abhishek Singh Suspended Director of Manpasand Beverages Ltd. vs. Bansal Industries & Ors.

> NCLAT judgment dated 2024-05-28. Citation: TCN-2024-NCLAT-00405. The appeal was filed by the Suspended Directors of the Corporate Debtor challenging the order…

- **Court:** NCLAT
- **Order date:** 28 May 2024
- **Citation:** TCN-2024-NCLAT-00405
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/abhishek-singh-suspended-director-of-manpasand-beverages-ltd-vs-bansal-industrie-c9fe2dae

## Summary

### Background

The appeal was filed by the Suspended Directors of the Corporate Debtor challenging the order dated 2023-09-11, by which the Section 9 application filed by the respondent, Bansal Industries, was admitted. The Section 9 application claimed an amount of Rs. 39,58,720 plus interest. An earlier order was passed on 2023-09-14, where the Appellant's counsel submitted that the application was filed for Rs. 36,11,237 and the Corporate Debtor was under CIRP from 2021-2023. An amount of Rs. 32,41,276 was offered to the Corporate Debtor but not accepted.

## Facts

The Suspended Directors of Manpasand Beverages Ltd. filed an appeal against an order admitting a Section 9 application by Bansal Industries. Bansal Industries claimed Rs. 39,58,720 plus interest. The Corporate Debtor was under CIRP from 2021-2023. The Appellant offered Rs. 32,41,276, which was not accepted. The Appellant was ready to deposit Rs. 36,11,237 and pay reasonable interest. The parties settled for Rs. 50.00 Lacs. The Operational Creditor received the amount, and CIRP was deemed unnecessary. No publication was made, and an immediate interim order was passed. The Adjudicating Authority directed payment of Rs. 02.00 Lacs to the IRP. The Operational Creditor was directed to pay Rs. 01.00 Lac to the IRP.

## Issues and analysis

### Issue 1: Whether the order admitting the Section 9 …

**Ratio:** The court considered the settlement between the parties and the receipt of dues by the

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**Reasoning:** The court reasoned that since the Operational Creditor had received the amount due and

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**Interpretation:** This reflects the principle that when the underlying debt is settled, the

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**Application:** The ratio was applied to the fact that the Operational Creditor received the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Abhishek…
- **Respondents:** Manpasand…; Bansal Indu…

## Timeline

- **2023-09-11 — Order Chal…**: Order passed admitting Section 9…
- **2023-09-14 — Previous…**: Learned Counsel for the Appellant submits that the Application was filed for an amount of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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