# In the matter of Blue Stampings & Forgings Ltd. Vs. BMM Ispat Ltd. & Anr. CA (AT) No. 160-2018

> NCLAT judgment dated 2018-04-25. Citation: TCN-2018-NCLAT-00320. The case involves an appeal against an order dated March 6, 2018, passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 25 Apr 2018
- **Citation:** TCN-2018-NCLAT-00320
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/blue-stampings-forgings-ltd-vs-bmm-ispat-ltd-anr-ca-9094ebae

## Summary

### Background

The case involves an appeal against an order dated March 6, 2018, passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench. The application preferred by the 1st respondent, an ‘Operational Creditor', under Section 9 of the Insolvency and Bankruptcy Code, 2016, was admitted, leading to a moratorium and the appointment of an Interim Resolution Professional.

## Facts

The 'Operational Creditor' filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, which was admitted by the Adjudicating Authority. This led to a moratorium and the appointment of an Interim Resolution Professional. The 'Corporate Debtor' appealed this decision. The total claimed amount by the 'Operational Creditor' was Rs. 1,60,47,076/-, which was reduced to Rs. 99,52,986/- after settlement talks. The appellant was willing to pay the total amount with interest, while the respondent was willing to settle if the original claimed amount was paid. Despite this, the Appellate Tribunal refused to set aside the resolution process, citing the existing debt, default, and the ongoing insolvency resolution process.

## Issues and analysis

### Issue 1: Whether the Appellate Tribunal can set aside the corporate insolvency resolution process based on …

**Ratio:** An Appellate Tribunal cannot set aside the resolution process on the ground that the

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**Reasoning:** The Appellate Tribunal considered the facts that a debt and default existed, and the

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**Interpretation:** This interprets that once the CIRP is initiated and admitted based on the

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

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Respondents:** Blue Stamping and…; BMM Ispat…
- **Advocates:** Vineet B…; Shubham…; +3 more

## Timeline

- **2018-03-06 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, passed an…
- **2018-04-25 — Order by Appellate…**: The National Company Law Appellate Tribunal disposed of the appeal, refusing to set aside…

## 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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