# In the matter of Nalin Virji Shah Vs. Satish Sadashiv Rane & Anr. CA(AT)(Insolvency) No. 208-2019

> NCLAT judgment dated 2019-03-07. Citation: TCN-2019-NCLAT-00734. The appeal was preferred against the order dated 14th February 2019, passed by the…

- **Court:** NCLAT
- **Order date:** 7 Mar 2019
- **Citation:** TCN-2019-NCLAT-00734
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/nalin-virji-shah-vs-satish-sadashiv-rane-anr-ca-92ffd0ea

## Summary

### Background

The appeal was preferred against the order dated 14th February 2019, passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, admitting the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Mr. Satish Sadashiv Rane. The appellant raised questions about the status of the respondent, arguing they do not fall under the definition of 'Financial Creditor'. The parties informed the court that they had settled the matter on 28th February 2019, and the 'Committee of Creditors' had not been constituted.

## Facts

Mr. Satish Sadashiv Rane filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, which was admitted by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, on 14th February 2019. Mr. Nalin Virji Shah, the appellant, challenged this order, arguing that Mr. Rane does not qualify as a 'Financial Creditor'. The parties subsequently settled the matter on 28th February 2019, before the 'Committee of Creditors' was formed. The appellant sought to substitute the Corporate Debtor with one of its Directors/Shareholders. The Interim Resolution Professional (IRP) confirmed that the Committee of Creditors was not constituted when the settlement was reached. The IRP also stated that the total cost incurred was Rs. 4,50,000, out of which

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## Issues and analysis

### Issue 1: Whether the appeal preferred by the 'Corporate Debtor' is maintainable given the Supreme Court's …

**Ratio:** An appeal by the 'Corporate Debtor' may not be maintainable in view of the decision of

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**Reasoning:** The court noted the appellant's status as a 'Corporate Debtor' and referenced the Supreme

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**Interpretation:** This implies that the right of a 'Corporate Debtor' to appeal an order

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**Application:** The court considered this point but ultimately allowed the withdrawal of the

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…
- **Appellants:** Nalin Virj…
- **Respondents:** M/s. Shah Group…; Satish Sadashiv…

## Timeline

- **2019-02-14 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, admitted the…
- **2019-02-28 — Settlement between…**: The parties settled the matter on 28th February 2019, before the 'Committee of Creditors'…

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