# In the matter of Monika Manish Bhasin & Anr. vs. Shivani Movers & Ors.

> NCLAT judgment dated 2023-09-15. Citation: TCN-2023-NCLAT-00198. This is a Company Appeal (AT) (Insolvency) No.561 of 2023 filed against an order dated…

- **Court:** NCLAT
- **Order date:** 15 Sept 2023
- **Citation:** TCN-2023-NCLAT-00198
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/monika-manish-bhasin-anr-vs-shivani-movers-ors-6873c01b

## Summary

### Background

This is a Company Appeal (AT) (Insolvency) No.561 of 2023 filed against an order dated 17.03.2023 passed by the Adjudicating Authority, which admitted a Section 7 application filed by the Financial Creditor. The appellant challenged the impugned order, stating that the application by the Financial Creditor was for a principal debt of Rs. 2,17,25,000/- and there were three applicants. An interim order was passed on 18.05.2023, directing the appellant to deposit Rs. 1,22,25,000/-. An I.A. No. 4219 of 2023 was filed for closure of the Corporate Insolvency Resolution Process (CIRP) due to a settlement between the parties dated 23.08.2023.

## Facts

The Financial Creditor filed an application under Section 7 of the IBC, which was admitted by the Adjudicating Authority on 17.03.2023. The appellant, Monika Manish Bhasin & Anr., challenged this order, arguing that the application was for a principal debt of Rs. 2,17,25,000/- and involved three applicants. The Corporate Debtor acknowledged the debt and admitted CIRP, appointing an IRP. An interim order was passed on 18.05.2023, directing the appellant to deposit Rs. 1,22,25,000/-, which they complied with. Subsequently, the parties reached a settlement on 23.08.2023, and an I.A. No. 4219 of 2023 was filed for the closure of the CIRP. The Financial Creditors, holding more than 90% of the CoC, supported the settlement. The appellant had deposited a demand draft

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## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) should be closed due to a settlement …

**Ratio:** When parties involved in CIRP reach a settlement, the ends of justice are served by

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**Reasoning:** The court observed that the parties had settled their disputes, and continuing the CIRP

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**Interpretation:** This interprets that the court gives importance to settlements reached between

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**Application:** In this case, the parties reached a settlement, and the Financial Creditors

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Monika Manish…
- **Respondents:** Shivani Movers &…

## Timeline

- **2023-03-17 — Order by Adjudicating…**: The Adjudicating Authority passed an order admitting a Section 7 application filed by the…
- **2023-05-18 — Interim…**: The court passed an interim order directing…

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