The Director of IERO Fiveriver Pvt. Ltd. (Corporate Debtor) appealed against an order by the Adjudicating Authority (National Company Law Tribunal) which admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Ajay Kumar Gupta and Mrs. Poonam Gupta. The Adjudicating Authority also ordered a moratorium and appointed an Interim Resolution Professional. A settlement was purportedly reached between the Corporate Debtor and the Financial Creditor. However, the Appellate Tribunal stated it was not empowered to accept the settlement. The key fact is the settlement reached between the parties after the admission of the application under Section 7, and the inability of the NCLAT to accept such settlement.

The Director of IERO Fiveriver Pvt. Ltd. (Corporate Debtor) appealed against an order by the Adjudicating Authority (National Company Law Tribunal) which admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Ajay Kumar Gupta and Mrs. Poonam Gupta. The Adjudicating Authority also ordered a moratorium and appointed an Interim Resolution Professional. A settlement was purportedly reached between the Corporate Debtor and the Financial Creditor. However, the Appellate Tribunal stated it was not empowered to accept the settlement. The key fact is the settlement reached between the parties after the admission of the application under Section 7, and the inability of the NCLAT to accept such settlement.