# In the matter of Lalit Kumar Kesarimal Jain Vs. JM Financial Trustee Company Pvt. Ltd. & Ors I.A. No. 1337 & 1338 of 2021 In Company Appeal (AT) (Ins) No. 357 & 358 of 2021

> NCLAT judgment dated 2021-07-19. Citation: TCN-2021-NCLAT-00178. The case involves an appeal against the initiation of Corporate Insolvency Resolution Process…

- **Court:** NCLAT
- **Order date:** 19 Jul 2021
- **Citation:** TCN-2021-NCLAT-00178
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/lalit-kumar-kesarimal-jain-vs-jm-financial-trustee-company-pvt-ltd-ors-ia-no-133-bfc6e938

## Summary

### Background

The case involves an appeal against the initiation of Corporate Insolvency Resolution Process (CIRP) against Kumar Urban Development Pvt. Ltd. The Adjudicating Authority admitted the application for CIRP on 20.04.2020. The appellant, being the Promoter/Director of the Corporate Debtor, filed the appeal. During the pendency of the appeal, the parties amicably settled the dispute and entered into a settlement agreement on 30.06.2021.

## Facts

The Financial Creditor (R-1) filed CP No. 960-961 of 2020 before the Adjudicating Authority under Section 7 of the IBC for initiating CIRP against the Corporate Debtor (Kumar Urban Development Pvt. Ltd.). The Adjudicating Authority admitted the application on 20.04.2020. The Appellant, being the Promoter/Director of the Corporate Debtor, preferred an appeal. The parties amicably settled the dispute and entered into a settlement agreement on 30.06.2021. As per the settlement agreement, the CIRP costs and fees of the Interim Resolution Professional (IRP) shall be borne by the Corporate Debtor Company. The IRP has already received the fees up to 30.06.2021, and the Corporate Debtor Company shall pay the remaining fees of IRP and CIRP costs. The Respondent No. 1, through

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## Issues and analysis

### Issue 1: Whether the Appellate Tribunal can exercise its inherent powers under Rule 11 of NCLAT Rules, 2016 …

**Ratio:** The Appellate Tribunal can exercise its inherent powers under Rule 11 of NCLAT Rules,

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**Reasoning:** The Appellate Tribunal considered the submissions of the counsels and noted that the

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**Interpretation:** Rule 11 of NCLAT Rules, 2016, provides the Appellate Tribunal with the inherent

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**Application:** In this case, the parties had amicably settled the dispute and entered into a

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## Parties

- **Judges:** Jarat Kuma…; Ashok Kumar…
- **Appellants:** Lalit Kumar…
- **Respondents:** Kumar Urban…; JM Financial…

## Timeline

- **2020-04-20 — Admission of Ap…**: The Adjudicating Authority admitted the application for CIRP against Kumar Urban…
- **2021-06-30 — Settlement Ag…**: The parties amicably settled the dispute…

## 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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