# In the matter of Chunilal Kanjibhai Gohel Vs. Indian Corp Law Anantprabha LGF Company Appeal (AT) (Ins) No.84 of 2020

> NCLAT judgment dated 2020-02-07. Citation: TCN-2020-NCLAT-00439. The appeal was filed against the admission of an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 7 Feb 2020
- **Citation:** TCN-2020-NCLAT-00439
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/chunilal-kanjibhai-gohel-vs-indian-corp-law-anantprabha-lgf-company-appeal-2bd12697

## Summary

### Background

The appeal was filed against the admission of an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The application was filed by Respondent No. 1, M/s. Indian Corp Law. The application under Section 9 was admitted on November 6, 2019. The appellant contacted the Operational Creditor, and the dues were cleared on January 15, 2020, through RTGS. An affidavit was filed regarding this payment. The appeal was filed on December 12, 2019, and January 20, 2020. The Tribunal directed the IRP not to constitute a Committee of Creditors.

## Facts

Chunilal Kanjibhai Gohel, Director of Paadam International Hotels Pvt. Ltd., filed an appeal against the admission of an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The application was filed by M/s. Indian Corp Law, the Operational Creditor. After the application was admitted on November 6, 2019, the Appellant contacted the Operational Creditor, and the dues were cleared on January 15, 2020, through RTGS. Respondent No.1 was willing to withdraw the original application filed under Section 9 as the Respondent No.1 has received its dues. The Corporate Debtor is Paadm International Hotels Pvt. Limited.

## Issues and analysis

### Issue 1: Whether the Impugned Order admitting the application under Section 9 of the IBC should be set aside …

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

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**Reasoning:** The Tribunal considered the affidavit filed by Respondent No. 1 and heard the parties.

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**Interpretation:** Rule 11 allows the NCLAT to exercise its inherent powers to ensure justice and

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**Application:** The Tribunal applied Rule 11 to set aside the Impugned Order, quash actions

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## Parties

- **Judges:** A.I.S. C…; A.B. S…; +1 more
- **Appellants:** Chunilal Kanjibhai…
- **Respondents:** Paadm Internationa…; M/s. Indian Corp…
- **Advocates:** Priya…; Sabhay Cho…

## Timeline

- **2019-11-06 — Application A…**: Application under…
- **2019-12-12 — Appeal F…**: Appeal filed against the…

## 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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