# In the matter of Anil Agarwal, Director Vs. HJM Fuels Pvt. Ltd. & Anr. CA(AT)(Ins)No. 534 of 2020

> NCLAT judgment dated 2020-06-22. Citation: TCN-2020-NCLAT-00217. The case involves an appeal related to insolvency proceedings. The Operational Creditor, HJM…

- **Court:** NCLAT
- **Order date:** 22 Jun 2020
- **Citation:** TCN-2020-NCLAT-00217
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/anil-agarwal-director-vs-hjm-fuels-pvt-ltd-anr-ca-01dc1a35

## Summary

### Background

The case involves an appeal related to insolvency proceedings. The Operational Creditor, HJM Fuels Pvt. Ltd., had initiated an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. However, a settlement was reached between the Operational Creditor and the Corporate Debtor. The Operational Creditor then withdrew the application, leading to the appeal becoming infructuous.

## Facts

HJM Fuels Pvt. Ltd., the Operational Creditor, initiated insolvency proceedings against a Corporate Debtor under Section 9 of the Insolvency and Bankruptcy Code, 2016. Before the matter could be fully adjudicated, the Operational Creditor and the Corporate Debtor reached a settlement. Consequently, HJM Fuels Pvt. Ltd. withdrew its application under Section 9. The Adjudicating Authority formally withdrew the application on June 17, 2020. Anil Agarwal, the Director, filed an appeal, but the counsel for the appellant corroborated the settlement and stated that the appellant did not wish to press the appeal further. The resolution costs and expenses of the Interim Resolution Professional were also settled.

## Issues and analysis

### Issue 1: Whether the appeal can be disposed of as infructuous due to the settlement between the Operational …

**Ratio:** When parties to a dispute reach a settlement and the applicant withdraws the application

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

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**Interpretation:** The interpretation is that once the underlying dispute is resolved and the

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**Application:** In this case, the settlement between HJM Fuels Pvt. Ltd. and the Corporate

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## Parties

- **Judges:** Bansi Lal…; V. P. S…; +1 more
- **Appellants:** Anil Ag…
- **Respondents:** HJM Fuels Pvt.…
- **Advocates:** Anushree K…; Gulshan Kr.…

## Timeline

- **2020-06-17 — Order by Adjudicating…**: The Adjudicating Authority passed an order…
- **2020-06-22 — NCLAT He…**: NCLAT heard the appeal and disposed of it as infructuous due to the settlement between…

## 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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