# In the mater of Mukesh Bhardwaj vs. Sarvottam Rolling Mills Ltd. & Anr. Company Appeal (AT) (Insolvency) No. 529 of 2023

> NCLAT judgment dated 2023-04-27. Citation: TCN-2023-NCLAT-00570. The appeal was filed against the order dated April 10, 2023, by which an application under…

- **Court:** NCLAT
- **Order date:** 27 Apr 2023
- **Citation:** TCN-2023-NCLAT-00570
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/in-the-mater-of-mukesh-bhardwaj-vs-sarvottam-rolling-mills-ltd-anr-company-appea-9d9ee6d6

## Summary

### Background

The appeal was filed against the order dated April 10, 2023, by which an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, was admitted by the Adjudicating Authority, commencing the Corporate Insolvency Resolution Process (CIRP).

## Facts

An appeal was filed against an order dated April 10, 2023, which admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, initiating the Corporate Insolvency Resolution Process (CIRP). After the order, a settlement was reached between the Corporate Debtor and the Operational Creditor on April 15, 2023, and the Operational Creditor received the entire payment. The IRP had made a publication in pursuance of the Impugned Order. The Adjudicating Authority had directed the payment of Rs. 2 Lakhs as fee, plus expenses incurred by the IRP in publication. The appellant is Mukesh Bhardwaj and the respondent is Sarvottam Rolling Mills Ltd. & Anr.

## Issues and analysis

### Issue 1: Whether the CIRP should be continued against the Corporate Debtor given the settlement and full …

**Ratio:** The continuation of CIRP is not warranted when the underlying debt has been settled and

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**Reasoning:** The court reasoned that since the Operational Creditor had received the entire payment as

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**Interpretation:** The interpretation is that the primary objective of the IBC is resolution of

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**Application:** In this case, the settlement and full payment to the Operational Creditor

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Mukesh Bh…
- **Respondents:** Sarvottam Rolling…

## Timeline

- **2023-04-10 — Order Da…**: Order passed by the Adjudicating Authority admitting an application under Section 9 of…
- **2023-04-15 — Settlemen…**: Settlement entered into between the…

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