# In the matter of Coal India Ltd. Vs. Gulf Coil Lubricants India Ltd. & Anr. CA(AT)(Insolvency) No. 807-2018

> NCLAT judgment dated 2019-02-11. Citation: TCN-2019-NCLAT-00780. The case involves an appeal against an order passed by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 11 Feb 2019
- **Citation:** TCN-2019-NCLAT-00780
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/coal-india-ltd-vs-gulf-coil-lubricants-india-ltd-anr-ca-42999273

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal, Kolkata Bench) which admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 filed by Gulf Oil Lubricants India Limited (Operational Creditor) against Eastern Coalfields Limited. The appeal was preferred by Coal India Limited. The principal amount was allegedly already paid, and the Adjudicating Authority was informed of this fact. The parties had settled the claim.

## Facts

Gulf Oil Lubricants India Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Eastern Coalfields Limited. The Adjudicating Authority admitted the application via an order dated 19th December, 2018. Coal India Limited preferred an appeal against this order. The appellant argued that the principal amount had already been paid, and no interest was payable as per the agreement. The parties had settled the claim. The contesting respondent, Gulf Oil Lubricants India Limited, accepted that the principal amount was paid prior to the admission of the application under Section 9, and interest has been paid, and the matter has been settled by an agreement dated 26th January, 2019. The settlement was made prior to

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the application under Section 9 of the …

**Ratio:** The ratio is that if parties have settled the matter before the constitution of the

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**Reasoning:** The court reasoned that the Adjudicating Authority failed to consider that the principal

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**Interpretation:** This interprets that the Adjudicating Authority should consider the settlement

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**Application:** The ratio and reasoning were applied to the facts of the case, where the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Coal Indi…
- **Respondents:** Eastern Coalfields…; Gulf Coil…
- **Advocates:** Arun Kath…; Ranjan Kumar…; +5 more

## Timeline

- **2018-12-19 — Impugned…**: The Adjudicating Authority (National Company Law Tribunal, Kolkata Bench) passed an order…
- **2018-12-22 — Matter Ta…**: The matter was taken up, and the learned Senior Counsel for the Appellant made…

## 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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