# In the matter of D.V. Prabhu vs. Omkara Assets Reconstruction Pvt. Ltd.

> NCLAT judgment dated 2024-09-19. Citation: TCN-2024-NCLAT-00189. The appeal was filed against the order dated 24.11.2023 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 19 Sept 2024
- **Citation:** TCN-2024-NCLAT-00189
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dv-prabhu-vs-omkara-assets-reconstruction-pvt-ltd-3ff0a09e

## Summary

### Background

The appeal was filed against the order dated 24.11.2023 passed by the National Company Law Tribunal, Ahmedabad, Division Bench, Court - I (Tribunal) by which CP (IB) No. 363 of 2023 and IA No. 276 of 2022 filed under Section 7 of the Insolvency & Bankruptcy Code, 2016 (‘Code') by the State Bank of India against the Hubtown Bus Terminal (Vadodra) Pvt. Ltd. ('Corporate Debtor') was admitted. The Appellant gave an undertaking on 01.07.2024 alleging that “to safeguard the Company from dragging into CIRP in IBC proceedings, we hereby undertake that we will extend our full co-operation to OARPL to sell/dispose of security under the SARFAESI Act”. The Respondent has been asked to file an Additional Affidavit /consent. The Additional Affidavit was filed on 06.09.2024.

## Facts

The State Bank of India initiated CIRP against Hubtown Bus Terminal (Vadodra) Pvt. Ltd. ('Corporate Debtor') under Section 7 of the Insolvency & Bankruptcy Code, 2016. The NCLT, Ahmedabad admitted the application. The Suspended Director of the Corporate Debtor filed an appeal against the admission order. During the pendency of the appeal, the debt of the State Bank of India was assigned to Omkara Assets Reconstruction Pvt. Ltd. The Appellant gave an undertaking to cooperate with Omkara Assets Reconstruction Pvt. Ltd. for the sale/disposal of security under the SARFAESI Act to safeguard the company from CIRP. The Respondent filed an additional affidavit seeking liberty to revive CIRP proceedings if the Appellant violates the undertaking. The Appellant agreed to

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## Issues and analysis

### Issue 1: Whether the impugned order initiating CIRP against the Corporate Debtor should be set aside in view …

**Ratio:** When parties arrive at a settlement and the appellant agrees to abide by the terms of the

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**Reasoning:** The court considered the settlement arrived at between the parties, evidenced by the

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**Interpretation:** This implies that the court recognizes the validity of settlements reached

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**Application:** In this case, the court applied the ratio by setting aside the impugned order

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** D.V. Pr…
- **Respondents:** Hubtown Bus…; Omkara Assets…

## Timeline

- **2023-11-24 — Order by…**: The National Company Law Tribunal, Ahmedabad, Division Bench, Court - I (Tribunal) passed…
- **2023-12-13 — Interim…**: The court passed the Interim Order i.e. “In the meantime, CoC be not constituted in…

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