# In the matter of Dilip L. Narang & Ors. Vs. Jitendra Kantilal Shah & Anr. CA(AT)(Ins)No. 1123 of 2019

> NCLAT judgment dated 2019-11-25. Citation: TCN-2019-NCLAT-00086. The case involves an appeal against the initiation of the Corporate Insolvency Resolution…

- **Court:** NCLAT
- **Order date:** 25 Nov 2019
- **Citation:** TCN-2019-NCLAT-00086
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dilip-l-narang-ors-vs-jitendra-kantilal-shah-anr-ca-73f1b360

## Summary

### Background

The case involves an appeal against the initiation of the Corporate Insolvency Resolution Process (CIRP) against Sutlej Housing Private Limited. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, admitted the application filed by Jitendra Kantilal Shah, a 'Financial Creditor', under Section 7 of the Insolvency and Bankruptcy Code, 2016. The appellant, a shareholder, sought an opportunity for settlement with the Corporate Debtor.

## Facts

Jitendra Kantilal Shah, a 'Financial Creditor', filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process against Sutlej Housing Private Limited, the 'Corporate Debtor'. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, admitted the application via an order dated September 25, 2019. Dilip L Narang & Ors., the Appellant-Shareholder, sought an opportunity for settlement with the 'Corporate Debtor'. The matter was adjourned to allow for settlement, but after more than a month, no final settlement was reached, although a Memorandum of Understanding was reached. The Appellant sought relief, but the court declined to grant it.

## Issues and analysis

### Issue 1: Whether the Appellant should be granted relief considering the lack of a final settlement between …

**Ratio:** The court is not inclined to grant relief when no final settlement has been reached

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**Reasoning:** Despite an adjournment to allow for settlement, more than a month passed without a final

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**Interpretation:** The court interprets the absence of a final settlement as a significant factor

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**Application:** Given that no final settlement was reached between the Appellant and the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** Dilip L N…
- **Respondents:** Sutlej Housing…; Jitendra Kantilal…

## Timeline

- **2019-09-25 — Impugned…**: The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, admitted the…
- **2019-11-25 — Order Da…**: The NCLAT dismissed the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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