# In the matter of Amit Katyal Vs. Manjula Khullar & Ors. CA(AT)(Insolvency) 79-2019

> NCLAT judgment dated 2019-02-04. Citation: TCN-2019-NCLAT-00802. The case involves an appeal against the admission of a Corporate Insolvency Resolution…

- **Court:** NCLAT
- **Order date:** 4 Feb 2019
- **Citation:** TCN-2019-NCLAT-00802
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/amit-katyal-vs-manjula-khullar-ors-ca-e372aaba

## Summary

### Background

The case involves an appeal against the admission of a Corporate Insolvency Resolution Process (CIRP) application under Section 7 of the I&B Code against 'M/s Krrish Shalimar Projects Pvt. Ltd.' (Corporate Debtor). The Adjudicating Authority admitted the application on January 16, 2019. During the pendency of the appeal and before the constitution of the Committee of Creditors (CoC), the shareholder of the Corporate Debtor reached a settlement with the Financial Creditors (Respondents No. 1, 2, and 3) on January 27, 2019. The Appellant then filed an application for withdrawal of the Insolvency Resolution Proceeding, citing a decision of the Supreme Court in ‘Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of India & Ors.'

## Facts

On 04.02.2019, Manjula Khullar & Ors. filed an application under Section 7 of the I&B Code for initiation of Corporate Insolvency Resolution Process against 'M/s Krrish Shalimar Projects Pvt. Ltd.' (Corporate Debtor). The Adjudicating Authority admitted the application on January 16, 2019. During the pendency of the appeal and before the constitution of the Committee of Creditors (CoC), the shareholder of the Corporate Debtor reached a settlement with the Financial Creditors (Respondents No. 1, 2, and 3) on January 27, 2019. The Appellant then filed an application for withdrawal of the Insolvency Resolution Proceeding, citing a decision of the Supreme Court in ‘Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of India & Ors.', Writ Petition (Civil) No. 99/2018

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## Issues and analysis

### Issue 1: Whether the Appellant can withdraw the Corporate Insolvency Resolution Process after reaching a …

**Ratio:** Rule 11 of the National Company Law Appellate Tribunal Rules, 2016, grants the Tribunal

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**Reasoning:** The court reasoned that since the parties had reached a settlement before the

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**Interpretation:** This interprets Rule 11 to provide flexibility in allowing settlements and

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where a

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Amit Ka…
- **Respondents:** M/s Krrish…; Manjula K…
- **Advocates:** Abhishek Manu…; Amit S…; +8 more

## Timeline

- **2019-01-16 — Adjudicating Authority…**: The Adjudicating Authority admitted the application under Section 7 of the I&B Code…
- **2019-01-25 — Supreme Court…**: The Supreme Court issued a decision in ‘Swiss Ribbons Pvt. Ltd. & Anr. Vs. Union of India…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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