# In the matter of Mohammad Shahid Qureshi vs. Drip Capital Inc & Anr.

> NCLAT judgment dated 2023-08-29. Citation: TCN-2023-NCLAT-00243. This is an appeal against the order dated 23.05.2023 passed by the Adjudicating Authority,…

- **Court:** NCLAT
- **Order date:** 29 Aug 2023
- **Citation:** TCN-2023-NCLAT-00243
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mohammad-shahid-qureshi-vs-drip-capital-inc-anr-1b4b2faf

## Summary

### Background

This is an appeal against the order dated 23.05.2023 passed by the Adjudicating Authority, which admitted a Section 7 application filed by the Respondent, Drip Capital Inc. The Appellant approached the Financial Creditor (Respondent No. 1) for an amicable settlement and withdrawal of the CIRP initiated against the Corporate Debtor. The Respondent No. 1 agreed in principle to settle the debt due and payable by the Corporate Debtor subject to full and final payment of $65,217.

## Facts

The case involves an appeal against an order by the Adjudicating Authority that admitted a Section 7 application by Drip Capital Inc. against Mohammad Shahid Qureshi. Qureshi sought an amicable settlement with Drip Capital Inc. and offered to pay $65,217 to settle the debt. The Financial Creditor agreed to the settlement if the full amount was paid. The IRP was directed to transmit the settlement amount from the Corporate Debtor's account to the Financial Creditor. The Appellant was also directed to pay Rs. 5 Lakhs towards IRP fees and expenses. The Financial Creditor issued a No Dues Certificate after receiving the settlement amount. The key fact is that a settlement was reached, the amount was paid, and a No Dues Certificate was issued, leading to the closure of the

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## Issues and analysis

### Issue 1: Whether the order passed by the Adjudicating Authority dated 23.05.2023 admitting the Section 7 …

**Ratio:** When a settlement is reached between the parties and the financial creditor confirms the

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**Reasoning:** The court reasoned that since the Financial Creditor had received the settlement amount

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**Interpretation:** This interprets the IBC to allow for the termination of CIRP proceedings when a

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**Application:** In this case, the Appellant and the Financial Creditor reached a settlement,

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Mohammad Shahid…
- **Respondents:** Drip Capit…

## Timeline

- **2023-05-23 — Order by Adjudicating…**: The Adjudicating Authority passed an order admitting the Section 7 application filed by…
- **2023-08-02 — Court He…**: Court heard learned counsel for the Appellant, learned counsel for the Financial…

## 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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