# In the matter of G. Rama Manohar Reddy Vs. SEI Trading India Pvt. Ltd. & Anr.

> NCLAT judgment dated 2018-09-19. Citation: TCN-2018-NCLAT-00113. This is an appeal against the order dated 31st July, 2018, passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 19 Sept 2018
- **Citation:** TCN-2018-NCLAT-00113
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/g-rama-manohar-reddy-vs-sei-trading-india-pvt-ltd-anr-115d235c

## Summary

### Background

This is an appeal against the order dated 31st July, 2018, passed by the Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench, Hyderabad, whereby the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 preferred by the Respondents- ‘SEI Trading India Private Limited' has been admitted, order of ‘Moratorium' has been passed and ‘Interim Resolution Professional' has been appointed. The appeal was preferred on the ground that there was a pre-existing dispute as Civil Suit O.S. No. 492 of 2017 was pending before the Senior Civil Judge, City Civil Court, Hyderabad.

## Facts

Mr. G. Rama Manohar Reddy, a shareholder of M/s. Aishwarya Technology & Telecom Limited ('Corporate Debtor'), filed an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench. The order admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by SEI Trading India Private Limited, initiating insolvency proceedings against the Corporate Debtor. A moratorium was imposed, and an Interim Resolution Professional was appointed. The appeal was based on the existence of a pre-existing dispute, evidenced by Civil Suit O.S. No. 492 of 2017 pending before the Senior Civil Judge, City Civil Court, Hyderabad. During the appeal proceedings, the parties informed the court that they had reached

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## Issues and analysis

### Issue 1: Whether the order passed by the Adjudicating Authority admitting the application under Section 9 of …

**Ratio:** When parties to a dispute reach a settlement, and the settlement is brought to the

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**Reasoning:** The court reasoned that since the parties had reached a settlement and a settlement deed

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**Interpretation:** This case interprets the interplay between insolvency proceedings and

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**Application:** In this specific case, the ratio and reasoning were applied to set aside the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** G. Rama Manohar…
- **Respondents:** M/s. Aishwarya…; SEI Trading India…

## Timeline

- **2017-01-01 — Civil Suit…**: Civil Suit O.S. No. 492 of 2017 was pending before the Senior Civil Judge, City Civil…
- **2018-07-31 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench, passed an…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(1) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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