# In the matter of Kaushik Ghosh Vs. Noor Alam & Ors. CA(AT)(Insolvency) 144-2019

> NCLAT judgment dated 17 Jul 2019. Citation: TCN-2019-NCLAT-00443. The appeal was filed against the non-approval of the 'Terms of Settlement' by the Committee…

- **Court:** NCLAT
- **Order date:** 17 Jul 2019
- **Citation:** TCN-2019-NCLAT-00443
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kaushik-ghosh-vs-noor-alam-ors-ca-0e84574d

## Summary

### Background

The appeal was filed against the non-approval of the 'Terms of Settlement' by the Committee of Creditors with the required 90% voting shares under Section 12A of the Insolvency and Bankruptcy Code, 2016.

## Facts

The 'Terms of Settlement' proposed by the Appellant on behalf of the Promoter were considered by the 'Committee of Creditors' under Section 12A of the Insolvency and Bankruptcy Code, 2016. The Committee of Creditors voted with 75% of the voting shares in favor of the settlement. However, the settlement was not approved because it did not meet the required 90% voting shares as stipulated by the Code.

Initially, the Appellate Tribunal was inclined to hear the appeal on its merits due to the non-approval of the settlement by the requisite 90% voting shares. The case was posted for orders on July 17, 2019, with the expectation that the appeal might be disposed of on that date. The appellant's counsel was instructed to be ready to address the Tribunal on merit.

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## Issues and analysis

### Issue 1: Whether the 'Terms of Settlement' were validly rejected by the Committee of Creditors due to not…

**Ratio:** The 'Terms of Settlement' were not approved as they did not receive the mandatory 90%…

**Reasoning:** The Committee of Creditors voted with 75% of the voting shares, which is less than the…

**Interpretation:** Section 12A of the Insolvency and Bankruptcy Code, 2016, requires a minimum of…

**Application:** Since the settlement received only 75% of the voting shares, it was not…

## Parties

- **Judges:** S.J. Mukhop…; Kanthi Na…
- **Advocates:** For Appel…; Puneet Singh…; +6 more

## Timeline

- **July 10, 2019 — Previous…**: The Appellate Tribunal considered the submission of the 'Resolution Professional'…
- **July 17, 2019 — Current…**: The appeal was disposed of as withdrawn, allowing the appellant to pursue the matter…

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