# In the matter of Janak Goyal & Anr. Vs. Satyendra Jain & Anr. CA(AT) (Insolvency) No. 202-2019

> NCLAT judgment dated 10 Jun 2019. Citation: TCN-2019-NCLAT-00512. The present appeal was filed against an order dated February 12, 2019, passed by the…

- **Court:** NCLAT
- **Order date:** 10 Jun 2019
- **Citation:** TCN-2019-NCLAT-00512
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/janak-goyal-anr-vs-satyendra-jain-anr-ca-717f5d5a

## Summary

### Background

The present appeal was filed against an order dated February 12, 2019, passed by the Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi. This order had admitted an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) by Mr. Satyendra Jain (Financial Creditor) against M/s. Omway Buildestate Private Limited (Corporate Debtor). The appellants, Janak Goyal & Anr., challenged this admission, primarily arguing that the debt was not legally payable or was time-barred.

## Facts

Mr. Satyendra Jain, acting as a Financial Creditor, initiated an application under section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) against M/s. Omway Buildestate Private Limited, the Corporate Debtor. This application sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the company due to an alleged default in debt repayment. The Adjudicating Authority, specifically the National Company Law Tribunal (NCLT), Principal Bench, New Delhi, admitted this application through an order dated February 12, 2019.

## Issues and analysis

### Issue 1: Whether the application filed under Section 7 of the I&B Code should be withdrawn given the…

**Ratio:** When a settlement is reached between the financial creditor and the corporate debtor, and…

**Reasoning:** The court reasoned that a settlement had been reached between the Financial Creditor and…

**Interpretation:** The court interpreted **Section 12A** of the I&B Code, read with **Regulation…

**Application:** In this case, the Financial Creditor and Corporate Debtor had settled their…

## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Advocates:** For Appel…; Mudit Shar…; +5 more

## Timeline

- **January 17, 2014 — Supreme Court…**: The Hon'ble Supreme Court dismissed the appeal filed by the Corporate Debtor against the…
- **February 12, 2019 — NCLT Ord…**: The Adjudicating Authority (NCLT), Principal Bench, New Delhi, admitted the application…

## 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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