# In the matter of Mr. G.R.K. Reddy Vs. ICICI Bank Limited & Ors. CA (AT) (Insolvency) No.  618  of 2019

> NCLAT judgment dated 2019-09-30. Citation: TCN-2019-NCLAT-00232. ICICI Bank Limited, a financial creditor, initiated a Corporate Insolvency Resolution Process…

- **Court:** NCLAT
- **Order date:** 30 Sept 2019
- **Citation:** TCN-2019-NCLAT-00232
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-grk-reddy-vs-icici-bank-limited-ors-ca-6caedeb9

## Summary

### Background

ICICI Bank Limited, a financial creditor, initiated a Corporate Insolvency Resolution Process (CIRP) against M/s. Marg Limited (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority (National Company Law Tribunal), Chennai, admitted the application on May 28, 2019. The Appellant, the promoter of the Corporate Debtor, challenged the admission order, alleging violation of natural justice due to inadequate opportunity given to the Corporate Debtor. However, the Committee of Creditors approved a Terms of Settlement with a majority voting share of 95.96% under Section 12A of the I&B Code. ICICI Bank then moved to withdraw its application.

## Facts

ICICI Bank Limited initiated CIRP against M/s. Marg Limited (Corporate Debtor) under Section 7 of the IBC. The NCLT Chennai admitted the application on May 28, 2019. The promoter of the Corporate Debtor appealed against this admission, citing violation of natural justice. The Committee of Creditors approved a Terms of Settlement with 95.96% majority under Section 12A of the IBC. ICICI Bank then sought to withdraw its application. SREI Equipment Finance Limited and Phoenix ARC Limited intervened, claiming their dues were not adequately addressed in the settlement. The NCLAT considered the settlement and ICICI Bank's withdrawal request. The relevance of the settlement lies in its potential to resolve the insolvency proceedings amicably. The intervention applications

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## Issues and analysis

### Issue 1: Whether the appeal against the admission of the Corporate Insolvency Resolution Process should be …

**Ratio:** When a settlement is reached between the parties and the Committee of Creditors approves

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**Reasoning:** The court considered the fact that the Terms of Settlement proposed by the promoters had

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**Interpretation:** Section 12A of the I&B Code allows for the withdrawal of an application for

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**Application:** In this case, the Committee of Creditors approved the Terms of Settlement with

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** G.R.K.…
- **Respondents:** M/s. Marg L…; ICICI Bank…

## Timeline

- **2019-05-28 — Admission of CIRP…**: The Adjudicating Authority (NCLT), Chennai, admitted the application filed by ICICI Bank…
- **2019-09-30 — ICICI Bank files…**: ‘ICICI Bank Limited' (Financial Creditor) filed an application under Section 7 of the…

## 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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