# In the matter of Madhu Nambiar Vs. Trivium Systems Inc. Rep. by their Indian Subsidiary Trivium India Software Pvt. Ltd. & Ors. CA(AT)(Insolvency) 946-2019

> NCLAT judgment dated 2019-09-18. Citation: TCN-2019-NCLAT-00265. The case involves an appeal against an order admitting an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 18 Sept 2019
- **Citation:** TCN-2019-NCLAT-00265
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/madhu-nambiar-vs-trivium-systems-inc-rep-by-their-indian-subsidiary-trivium-indi-087b44ff

## Summary

### Background

The case involves an appeal against an order admitting an application under Section 9 of the Insolvency and Bankruptcy Code (I&B Code). M/s. Trivium Systems Inc., the Operational Creditor, had filed a C.P. No. 133/15 under Sections 433(e), 434(1) and 439 of the Companies Act, 1956 before the High Court of Karnataka against M/s. Sobha Renaissance Information Technology Private Limited (SRIT), the Corporate Debtor, for winding-up. Subsequently, the case was transferred to the National Company Law Tribunal, Bengaluru Bench, and converted into an application under Section 9 of the I&B Code. The Adjudicating Authority admitted the application, leading to the appeal.

## Facts

M/s. Trivium Systems Inc. (Operational Creditor) initiated proceedings against M/s. Sobha Renaissance Information Technology Private Limited (Corporate Debtor) for winding-up under the Companies Act, 1956, before the High Court of Karnataka. The case was later transferred to NCLT Bengaluru and converted to an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The NCLT admitted the application, leading to the current appeal. The appellant challenged the order, initially citing limitation but later expressing willingness to settle. The parties reached a settlement, with the appellant paying the total claim amount to the operational creditor. The Committee of Creditors was not constituted. The appellant handed over two Demand Drafts for Rs.

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## Issues and analysis

### Issue 1: Whether the impugned order admitting the application under Section 9 of the Insolvency and …

**Ratio:** The inherent power of the appellate tribunal under Rule 11 of the NCLAT Rules, 2016,

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**Reasoning:** The court reasoned that since the parties had settled the matter, and the operational

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**Interpretation:** This demonstrates the court's willingness to prioritize settlements and

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**Application:** The court applied this principle by setting aside the impugned order, as the

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Madhu Na…
- **Respondents:** M/s. Sobha…; M/s. Trivium…
- **Advocates:** Rohan S…; Shival…; +2 more

## Timeline

- **1956-01-01 — Companies Ac…**: Proceedings initiated under Sections 433(e), 434(1) and 439 of the Companies Act, 1956…
- **2016-01-01 — Insolvency and…**: The petition was converted as application under Section 9 of the Insolvency and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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