# In the matter of Bagh Bahar Appliances Pvt. Ltd. vs. Unity Small Finance Bank Ltd.

> NCLAT judgment dated 2025-08-05. Citation: TCN-2025-NCLAT-00424. The appeal was filed against an order by the adjudicating authority dated 07.07.2025, which…

- **Court:** NCLAT
- **Order date:** 5 Aug 2025
- **Citation:** TCN-2025-NCLAT-00424
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bagh-bahar-appliances-pvt-ltd-vs-unity-small-finance-bank-ltd-d28be744

## Summary

### Background

The appeal was filed against an order by the adjudicating authority dated 07.07.2025, which allowed I.A. IBC 2080(MB)/2025 filed by the financial creditor, reviving the Corporate Insolvency Resolution Process (CIRP). The appellant, being the Corporate Debtor, challenged this order.

## Facts

The company petition was filed by Unity Small Finance Bank Ltd. under Section 7 of IBC as C.P. (IB) No.160(MB)/2024.

An OTS (One Time Settlement) was accepted on 18.01.2024, and the company petition was permitted to be withdrawn on 21.01.2025.

The order dated 21.01.2025 included consent terms, stating that the bank would withdraw all legal proceedings upon receipt of the entire settlement amount but reserved the right to reinstate proceedings in case of default.

The financial creditor filed I.A. No. 2080(MB)/2025 alleging breach of the settlement and seeking revival of the CIRP.

The adjudicating authority found that the corporate debtor failed to comply with the settlement terms and allowed the revival of the company petition.

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## Issues and analysis

### Issue 1: Whether the adjudicating authority was correct in reviving the CIRP after a settlement had been …

**Ratio:** The adjudicating authority was

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**Reasoning:** The original order withdrawing the Section 7 application contained clauses that

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**Interpretation:** The court interpreted the withdrawal order as conditional, with the condition

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**Application:** The court applied the principle that parties are bound by the terms of their

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Raven Resha…; Janhavi Hi…
- **Respondents:** Bagh Bahar…; UNITY SMALL…
- **Advocates:** Manoj Kuma…; Anuj Kumar…; +2 more

## Timeline

- **2024-01-18 — OTS Accep…**: OTS was acc…
- **2025-01-21 — Withdrawal of Company…**: The court permitted the…

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