# In the matter of Harsh Krishanchander Kalra Vs. Small Industries Development Bank of India & Anr. Company Appeal (AT) Insolvency No. 1289 of 2022

> NCLAT judgment dated 2023-02-03. Citation: TCN-2023-NCLAT-00743. The case involves an appeal against an order dated 10.10.2022 passed by the National Company…

- **Court:** NCLAT
- **Order date:** 3 Feb 2023
- **Citation:** TCN-2023-NCLAT-00743
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/harsh-krishanchander-kalra-vs-small-industries-development-bank-of-india-anr-com-66379e94

## Summary

### Background

The case involves an appeal against an order dated 10.10.2022 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, in a Corporate Insolvency Resolution Process (CIRP) initiated under Section 7 of the Insolvency and Bankruptcy Code (IBC). The appellant, Harsh Krishanchander Kalra, filed the appeal against the admission order passed by the Adjudicating Authority based on an application filed by the Small Industries Development Bank of India (SIDBI). I.A. No. 437 of 2023 was filed, bringing the Consent Terms between the Appellant and SIDBI on record.

## Facts

Harsh Krishanchander Kalra, the suspended director of Kalra Overseas and Precision Engineering Ltd., filed an appeal against an order dated 10.10.2022 passed by the National Company Law Tribunal (NCLT), Mumbai Bench. The order was related to a Corporate Insolvency Resolution Process (CIRP) initiated under Section 7 of the Insolvency and Bankruptcy Code (IBC) by Small Industries Development Bank of India (SIDBI). The appellant and SIDBI entered into Consent Terms/OTS (One Time Settlement), which were brought on record via I.A. No. 437 of 2023. The Consent Terms were dated 24th January, 2023 and 30th January, 2023. The appeal sought to set aside the NCLT order, which allowed SIDBI to continue the CIRP proceedings. The key fact is the existence of the Consent Terms/OTS,

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## Issues and analysis

### Issue 1: Whether the Consent Terms/OTS between the Appellant …

**Ratio:** The principle of upholding agreements and settlements between parties, especially when

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**Reasoning:** The court considered the I.A. No. 437 of 2023, which brought the Consent Terms/OTS

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**Interpretation:** The interpretation involves recognizing the legal validity and binding nature

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**Application:** The court applied this principle by taking the Consent Terms/OTS on record,

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Harsh Krishanchand…
- **Respondents:** Kalra Overseas &…; Small Industries…

## Timeline

- **2022-10-10 — Order by…**: The National Company Law Tribunal (NCLT), Mumbai Bench, passed an order in C.P. (IB) –…
- **2023-01-24 — OTS Date…**: One Time Settlement…

## 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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