# In the matter of Mr. Pranav Sharma Vs. Power2sme Pvt. Ltd. & Anr. CA(AT)(Ins) Nos. 1257-1258 of 2019

> NCLAT judgment dated 2019-11-25. Citation: TCN-2019-NCLAT-00087. The case involves a Company Appeal (AT) (Insolvency) Nos. 1257-1258 of 2019 before the…

- **Court:** NCLAT
- **Order date:** 25 Nov 2019
- **Citation:** TCN-2019-NCLAT-00087
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-pranav-sharma-vs-power2sme-pvt-ltd-anr-ca-bad6cfa2

## Summary

### Background

The case involves a Company Appeal (AT) (Insolvency) Nos. 1257-1258 of 2019 before the National Company Law Appellate Tribunal, New Delhi. The appellant is Mr. Pranav Sharma, and the respondent is Power2sme Pvt. Ltd. & Anr. The learned counsel for the Appellant submits that the parties have settled the matter. However, the ‘Committee of Creditors' having constituted, the matter is now being placed before the ‘Committee of Creditors' which is likely to hold its meeting tomorrow i.e. on 26th November, 2019.

## Facts

Mr. Pranav Sharma filed a Company Appeal (AT) (Insolvency) against Power2sme Pvt. Ltd. & Anr. The parties involved have reportedly settled the matter. However, since the Committee of Creditors (CoC) has already been constituted, the matter is presented before the CoC. The CoC is scheduled to hold a meeting on November 26, 2019. The court directs the CoC to decide the matter in accordance with the law. The court also notes that if the matter has been settled with all the Creditors, ‘Operational Creditors' and the ‘Financial Creditors', it will be open to the Adjudicating Authority (National Company Law Tribunal) on the approval of the ‘Committee of Creditors'. The court directs the ‘Committee of Creditors' to pass appropriate order in terms of Section 12A of the

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors should decide the matter in accordance with law, considering the …

**Ratio:** The Committee of Creditors has a fiduciary duty to act in the best interests of all

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**Reasoning:** The court emphasizes the CoC's role even after a settlement is reported. This is because

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**Interpretation:** This highlights the importance of the CoC in insolvency proceedings, even when

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**Application:** In this case, the CoC must review the settlement terms to ensure they are fair

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** Pranav S…
- **Respondents:** Power2SME Pvt.…

## Timeline

- **2019-11-25 — Order Da…**: Learned counsel for the Appellant submits that the parties have settled the matter. The…
- **2019-11-26 — Scheduled M…**: The Committee of Creditors is…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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