# In the matter of Mr. Digant L. Kapadia Vs. Bank of India & Anr.Company Appeal (AT) (Insolvency) No. 1040 of 2019

> NCLAT judgment dated 2019-11-20. Citation: TCN-2019-NCLAT-00098. The 'Bank of India' filed an application under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLAT
- **Order date:** 20 Nov 2019
- **Citation:** TCN-2019-NCLAT-00098
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-digant-l-kapadia-vs-bank-of-india-anrcompany-appeal-7423638e

## Summary

### Background

The 'Bank of India' filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiating ‘Corporate Insolvency Resolution Process' against ‘B.E. Billimoria & Company Limited'. The NCLAT appeal was filed against the order. During the proceedings, the Appellant expressed readiness for an amicable settlement with 'Bank of India'. Terms of Settlement were reached, and the Appellant filed the 'Terms of Settlement' and a related letter.

## Facts

The 'Bank of India' initiated Corporate Insolvency Resolution Process (CIRP) against ‘B.E. Billimoria & Company Limited' under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, approved the initiation. The Appellant appealed the order. During the appeal, the Appellant expressed willingness for an amicable settlement with the 'Bank of India'. Terms of Settlement were reached, and the Appellant filed the 'Terms of Settlement' and a letter dated 1st November, 2019, outlining the terms of the One Time Settlement (OTS). The OTS involved a payment of Rs. 107.50 crore with specific payment schedules and interest rates. The OTS was subject to various conditions, including the submission of

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## Issues and analysis

### Issue 1: Whether the impugned order initiating the Corporate Insolvency Resolution Process against ‘B.E. …

**Ratio:** The NCLAT has the power to set aside an order initiating CIRP under Rule 11 of the NCLAT

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**Reasoning:** The court considered the settlement reached between the parties, specifically the 'Bank

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**Interpretation:** The settlement indicates that the financial creditor is satisfied with the

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**Application:** Given the settlement, the court exercised its power to set aside the impugned

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** Digant L. K…
- **Respondents:** B.E. Billimoria &…; BANK OF INDIA &…
- **Advocates:** Dhaval Des…; Jitendra…

## Timeline

- **2019-11-20 — Application…**: The 'Bank of India' filed an application under Section 7 of the Insolvency and Bankruptcy…
- **2019-09-20 — Impugned…**: The Adjudicating Authority initiated ‘Corporate Insolvency Resolution Process' of ‘B.E.…

## 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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