# In the matter of Manju Gaur & Anr. Vs. Ajay Jugran & Anr. Company Appeal (AT) (Insolvency) No. 734 of 2019

> NCLAT judgment dated 14 Aug 2019. Citation: TCN-2019-NCLAT-00358. This appeal was filed by Manoj Gaur and another, promoters of M/s Gaursons Sportswood…

- **Court:** NCLAT
- **Order date:** 14 Aug 2019
- **Citation:** TCN-2019-NCLAT-00358
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/manju-gaur-anr-vs-ajay-jugran-anr-company-appeal-c4d8fe97

## Summary

### Background

This appeal was filed by Manoj Gaur and another, promoters of M/s Gaursons Sportswood Private Limited (the 'Corporate Debtor'), challenging an order dated July 10, 2019. This order was issued by the Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi, which had admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (I&B Code). The application was filed by Mr. Ajay Jugran, who was referred to as the 'Financial Creditor', against the 'Corporate Debtor'. The core of the dispute revolved around whether Mr. Ajay Jugran could be considered a 'Financial Creditor' given his alleged failure to pay the amount upon receipt of a demand notice.

## Facts

Manoj Gaur and another, promoters of M/s Gaursons Sportswood Private Limited, the 'Corporate Debtor', filed an appeal against an order dated July 10, 2019. This order was issued by the Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi. The Adjudicating Authority had admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Mr. Ajay Jugran, the 'Financial Creditor', against the 'Corporate Debtor'.

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## Issues and analysis

### Issue 1: Whether the appeal against the order admitting the Section 7 application should be allowed given…

**Ratio:** When parties to an insolvency proceeding under Section 7 of the I&B Code reach a mutual…

**Reasoning:** The court reasoned that a mutual settlement had been reached between the 'Corporate…

**Interpretation:** The court interpreted Rule 11 of the NCLAT Rules 2016 as conferring inherent…

**Application:** Given the Settlement Deed, which included the withdrawal of the Section 7…

## Parties

- **Judges:** S.J. Mukhop…; KanthiNar…
- **Advocates:** For Appel…; Sidharth…; +6 more

## Timeline

- **July 10, 2019 — NCLT Ord…**: Adjudicating Authority (NCLT), Principal Bench, New Delhi, admitted the application under…
- **July 19, 2019 — Matter Ta…**: The matter was taken up, and appellants' counsel submitted that Mr. Ajay Jugran could not…

## 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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