# In the matter of Mr. Rajiv Choudhary Vs. Shri Hukum Singh & Anr. CA(AT)(Insolvency)No. 1243 of 2019

> NCLAT judgment dated 2019-11-15. Citation: TCN-2019-NCLAT-00134. Mr. Hukum Singh, the Financial Creditor, filed an application under Section 7 of the…

- **Court:** NCLAT
- **Order date:** 15 Nov 2019
- **Citation:** TCN-2019-NCLAT-00134
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-rajiv-choudhary-vs-shri-hukum-singh-anr-ca-efdb22fd

## Summary

### Background

Mr. Hukum Singh, the Financial Creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process against Adaab Hotels Ltd., the Corporate Debtor. The Adjudicating Authority (National Company Law Tribunal), Court-VI, New Delhi, admitted the application through an order dated November 6, 2019. Subsequently, the Director of the Corporate Debtor preferred an appeal against this order.

## Facts

On 15.11.2019, Mr. Hukum Singh, the Financial Creditor, initiated proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 against M/s. Adaab Hotels Ltd., the Corporate Debtor. The National Company Law Tribunal admitted the application on November 6, 2019, leading to an appeal by the Corporate Debtor's Director. During the appeal proceedings, the Appellant paid Rs. 1,18,24,984/- to Mr. Hukum Singh via Banker's Cheque No. 046566 dated 14th November, 2019. The parties informed the court that the Committee of Creditors had not been constituted. Mr. Atul Kumar, the Interim Resolution Professional, confirmed he had worked for nine days and had been paid for publication by Mr. Hukum Singh. His fee was assessed at Rs.1,00,000/- to be paid by the Appellant. The

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## Issues and analysis

### Issue 1: Whether the impugned order dated 6th November, 2019 admitting the application under Section 7 of …

**Ratio:** The principle is that if the debt is satisfied during the pendency of an appeal against

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**Reasoning:** The court reasoned that since the Appellant had paid the outstanding amount claimed by

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**Interpretation:** This interprets the powers of the appellate tribunal to ensure justice and

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**Application:** The ratio was applied to the fact that the Appellant had made the payment to

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## Parties

- **Judges:** S.J. Mukhop…; Venugop…
- **Appellants:** Rajiv Cho…
- **Respondents:** M/s. Adaab Hotels…; Hukum S…
- **Advocates:** Virender…; Vishal…; +5 more

## Timeline

- **2019-11-15 — Application…**: Mr. Hukum Singh filed an application under Section 7 of the Insolvency and Bankruptcy…
- **2019-11-06 — Application A…**: The Adjudicating Authority admitted the application for Corporate Insolvency Resolution…

## 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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