# In the matter of Mr. D.S. Reddy Vs. Eco Drilling Fluids and Ors. CA(AT)(Ins) No. 96 of 2020

> NCLAT judgment dated 2020-03-03. Citation: TCN-2020-NCLAT-00358. The case originates from an order dated 2020-01-06 passed by the National Company Law…

- **Court:** NCLAT
- **Order date:** 3 Mar 2020
- **Citation:** TCN-2020-NCLAT-00358
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-ds-reddy-vs-eco-drilling-fluids-and-ors-ca-07577674

## Summary

### Background

The case originates from an order dated 2020-01-06 passed by the National Company Law Tribunal, New Delhi, concerning Company Petition No.IB-1584/ND/2019. Respondent No.1, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The application was admitted by the Adjudicating Authority on January 6, 2020. Subsequently, Mr. D.S. Reddy, partner of DSTR Infrastructure & Projects LLP (Respondent No.3/Corporate Debtor), filed an appeal against the admission of the application.

## Facts

Mr. D.S. Reddy, partner of DSTR Infrastructure & Projects LLP, filed an appeal against the admission of an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The application was filed by Eco Drilling Fluids Pvt. Ltd., the Operational Creditor, before the National Company Law Tribunal (NCLT), New Delhi. The NCLT admitted the application on January 6, 2020. Subsequently, the Operational Creditor and the Appellant settled the dispute, with the Operational Creditor confirming receipt of all dues. The Interim Resolution Professional (IRP) stated that the Committee of Creditors (COC) had not yet been constituted. The Operational Creditor then sought to withdraw the original application. The key fact is the settlement between the parties,

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## Issues and analysis

### Issue 1: Whether the appeal against the admission of the application under Section 9 of the IBC should be …

**Ratio:** The principle of upholding settlements between parties in insolvency proceedings,

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**Reasoning:** The court reasoned that the settlement reached between the Operational Creditor and the

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**Interpretation:** The legal issue revolves around the interpretation of Section 9 of the IBC and

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** A.I.S. C…; A.B. S…; +1 more
- **Appellants:** D.S. R…
- **Respondents:** DSTR Infrastructur…; Eco Drilling…
- **Advocates:** Mukesh…; Mamt…; +2 more

## Timeline

- **2020-01-06 — Order by…**: National Company Law Tribunal, New Delhi, passed an order in Company Petition…
- **2020-01-06 — Admission of Ap…**: Application under Section 9 of IBC was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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