# In the matter of Mohan Bhandari vs. Asset Reconstruction Company (India) Ltd. & Anr. Company Appeal (AT) (Ins.) No. 1368 of 2022

> NCLAT judgment dated 2023-04-18. Citation: TCN-2023-NCLAT-00617. The appeal was filed against the order dated 2022-11-11 passed by the Adjudicating Authority,…

- **Court:** NCLAT
- **Order date:** 18 Apr 2023
- **Citation:** TCN-2023-NCLAT-00617
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mohan-bhandari-vs-asset-reconstruction-company-715676ae

## Summary

### Background

The appeal was filed against the order dated 2022-11-11 passed by the Adjudicating Authority, which admitted a Section 7 application. The appellant filed additional documents, including a letter dated 2023-04-10 from the respondent containing a 'No Dues Certificate,' stating that the entire settlement amount had been received by the respondent.

## Facts

Mohan Bhandari filed an appeal against Asset Reconstruction Company (India) Ltd. The appeal contested an order dated 2022-11-11 by the Adjudicating Authority, which admitted a Section 7 application. The appellant submitted additional documents, including a 'No Dues Certificate' dated 2023-04-10 issued by the respondent, confirming the receipt of the entire settlement amount. The appellant's counsel argued that the IRP had only made a publication. The appellant undertook to pay the necessary expenses and fees to the IRP after receiving the bill. The existence of a 'No Dues Certificate' is a key fact, suggesting that the debt had been settled, potentially rendering the CIRP unnecessary.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order admitting the Section 7 application should be set aside …

**Ratio:** When a 'No Dues Certificate' is issued, indicating full settlement, continuing the CIRP

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**Reasoning:** The court reasoned that since the respondent had issued a 'No Dues Certificate,'

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**Interpretation:** This implies that the existence of a 'No Dues Certificate' creates a

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**Application:** The court applied this principle by setting aside the Adjudicating Authority's

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Mohan Bha…
- **Respondents:** Asset Reconstructi…

## Timeline

- **2022-11-11 — Order by Adjudicating…**: The Adjudicating Authority passed an order admitting a Section 7 application against the…
- **2023-04-10 — No Dues Certificate…**: The Respondent issued a 'No Dues Certificate' confirming that the entire settlement…

## 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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