# In the matter of Madhukar Tulsi Vs. Ajay Kumar Gupta & Ors. CA (AT) No. 279-2017

> NCLAT judgment dated 2017-11-30. Citation: TCN-2017-NCLAT-00040. The appellant, Director of IERO Fiveriver Pvt. Ltd. (Corporate Debtor), filed an appeal…

- **Court:** NCLAT
- **Order date:** 30 Nov 2017
- **Citation:** TCN-2017-NCLAT-00040
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/madhukar-tulsi-vs-ajay-kumar-gupta-ors-ca-393e3451

## Summary

### Background

The appellant, Director of IERO Fiveriver Pvt. Ltd. (Corporate Debtor), filed an appeal against the order dated November 13, 2017, passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, in C.P. No. IB-355/ND/2017. The application preferred by Ajay Kumar Gupta and Mrs. Poonam Gupta under Section 7 of the Insolvency and Bankruptcy Code, 2016, was admitted, a moratorium was ordered, and an Interim Resolution Professional was appointed.

## Facts

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.

## Issues and analysis

### Issue 1: Whether the Appellate Tribunal is empowered to accept a settlement/agreement reached between the …

**Ratio:** The Appellate Tribunal is not empowered to accept any settlement/agreement reached

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**Reasoning:** The Appellate Tribunal explicitly stated that it lacks the power to accept any settlement

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**Interpretation:** This indicates a limitation on the Appellate Tribunal's authority regarding

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**Application:** In this specific case, the settlement reached between the Corporate Debtor and

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** MADHUKAR…
- **Respondents:** IERO Fiveriver…; Ajay Kumar…

## Timeline

- **2017-11-13 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal) passed an order admitting the…
- **2017-11-18 — Settlement…**: A settlement was reached between the…

## 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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