# In the matter of Akasa Finance Ltd. Vs. Atul Kumar Jain & Anr.,Company Appeal (AT) (Insolvency) No. 1337 of 2022 & I.A. No. 4150 of 2022

> NCLAT judgment dated 2022-11-11. Citation: TCN-2022-NCLAT-00109. The appeal was filed against the order dated 2022-08-22, which allowed I.A./736/2022 filed by…

- **Court:** NCLAT
- **Order date:** 11 Nov 2022
- **Citation:** TCN-2022-NCLAT-00109
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/akasa-finance-ltd-vs-atul-kumar-jain-anrcompany-appeal-69c86fda

## Summary

### Background

The appeal was filed against the order dated 2022-08-22, which allowed I.A./736/2022 filed by the IRP under Section 12A and closed the Corporate Insolvency Resolution Process (CIRP). The Appellant-Financial Creditor also filed an objection to the application. The Appellant's counsel submitted that the Committee of Creditors (CoC) was not constituted for a long period, and the claims of the Financial Creditor were not verified. The High Courts directed the IRP to consider the claims of other Financial Creditors. The Adjudicating Authority noted the Orders dated 2020-07-06 and 2022-01-13 of the High Court and that the Operational Creditor received confirmation from the IRP regarding the settlement between the Petitioner and Respondent.

## Facts

Akasa Finance Ltd. filed an appeal against an order that allowed an application under Section 12A of the Insolvency and Bankruptcy Code (IBC) and closed the Corporate Insolvency Resolution Process (CIRP). The appellant, a financial creditor, objected to the application, arguing that the Committee of Creditors (CoC) was not constituted, and their claims were not verified. The Adjudicating Authority noted prior High Court orders and confirmation from the IRP regarding a settlement between the petitioner and respondent. The court observed that the financial creditor and corporate debtor had settled, and the Adjudicating Authority had allowed the Section 12A application. The appellant was given liberty to seek remedies against the corporate debtor for its dues.

## Issues and analysis

### Issue 1: Whether the appeal should be entertained given the settlement between the Financial Creditor and …

**Ratio:** An appeal should not be entertained when a settlement has been reached between the

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**Reasoning:** The court reasoned that since a settlement had been reached between the Financial

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**Interpretation:** Section 12A of the IBC allows for the withdrawal of CIRP upon the approval of

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**Application:** In this case, the court applied the ratio by refusing to entertain the appeal

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Akasa Finan…
- **Respondents:** Sh. Atul Kumar…

## Timeline

- **2022-08-22 — Order Da…**: Order passed by the Adjudicating…
- **2020-07-06 — High Court…**: Orders dated 2020-07-06 of High Court…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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