# In the matter of Amlika Mercantile Pvt. Ltd. vs. Key Trade AG & 2 Ors.

> NCLAT judgment dated 2023-10-05. Citation: TCN-2023-NCLAT-00144. The case originates from an Impugned Order dated 27.08.2021 in CP(IB) No.524/9/HDB/2019,…

- **Court:** NCLAT
- **Order date:** 5 Oct 2023
- **Citation:** TCN-2023-NCLAT-00144
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/amlika-mercantile-pvt-ltd-vs-key-trade-ag-2-ors-7046833c

## Summary

### Background

The case originates from an Impugned Order dated 27.08.2021 in CP(IB) No.524/9/HDB/2019, passed by the 'Adjudicating Authority', which is the National Company Law Tribunal, Hyderabad Bench. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016. The matter concerns a Company Appeal (AT) (CH) (Ins) No.215/2021.

## Facts

Amlika Mercantile Pvt. Ltd. filed an appeal against Key Trade AG & 2 Ors. before the National Company Law Appellate Tribunal at Chennai. The appeal arises from an Impugned Order dated 27.08.2021 passed by the National Company Law Tribunal, Hyderabad Bench, in CP(IB) No.524/9/HDB/2019. The 2nd Respondent communicated to the 1st Respondent its willingness to release INR 20 Crores towards full and final settlement of EXP 3 of 2017 and EXP 1 of 2019. A memo dated 04.10.2023 was filed stating that the 2nd Respondent received approval from its Secured Creditor, Asset Care and Reconstruction Limited (ACRE), to release INR 20 Crores, which is under lien before the Telangana High Court. The Tribunal noted that INR 20 Crores was received from the National Company Law

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## Issues and analysis

### Issue 1: Whether the Tribunal was justified in allowing the appeal and setting aside the Impugned Order …

**Ratio:** The legal principle applied is that if a certain condition or event occurs that addresses

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**Reasoning:** The Tribunal reasoned that since a sum of INR 20 Crores was received by the '1st

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**Interpretation:** The interpretation is that the receipt of INR 20 Crores by the 1st Respondent

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**Application:** The application of the ratio and reasoning to the facts is that the Tribunal

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## Parties

- **Judges:** M. Venu…; Shreesha…
- **Appellants:** Amlika Mercantile…
- **Respondents:** Key Tra…

## Timeline

- **2021-08-27 — Impugned…**: Impugned Order passed by the 'Adjudicating Authority' (National Company Law Tribunal,…
- **2023-10-04 — Memo Fil…**: A 'Memo' dated 04.10.2023 was filed before the 'Office of the Registry' on behalf of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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