# In the matter of Nalin Virji Shah Vs. Satish Sadashiv Rane & Anr. Company Appeal (AT) (Ins) No. 558 of 2021

> NCLAT judgment dated 2021-08-06. Citation: TCN-2021-NCLAT-00150. The case involves a Company Appeal (AT) (Ins) No. 558 of 2021 before the National Company Law…

- **Court:** NCLAT
- **Order date:** 6 Aug 2021
- **Citation:** TCN-2021-NCLAT-00150
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/nalin-virji-shah-vs-satish-sadashiv-rane-anr-company-appeal-66595004

## Summary

### Background

The case involves a Company Appeal (AT) (Ins) No. 558 of 2021 before the National Company Law Appellate Tribunal, New Delhi. The appellant is Nalin Virji Shah, and the respondents are Satish Sadashiv Rane & Anr. The matter concerns a settlement between the appellant (also referred to as 'Corporate Debtor') and Respondent No. 1, which is on record. However, certain terms of the settlement have not been complied with, leading Respondent No. 1 to file an application before the Adjudicating Authority under Section 7 of the IBC, 2016, which was admitted by the impugned order.

## Facts

Nalin Virji Shah is the appellant in a Company Appeal (AT) (Ins) No. 558 of 2021. Satish Sadashiv Rane & Anr. are the respondents. The case is before the National Company Law Appellate Tribunal, New Delhi. A settlement was reached between the appellant (also referred to as 'Corporate Debtor') and Respondent No. 1. However, certain terms of the settlement were not complied with. Consequently, Respondent No. 1 filed an application under Section 7 of the IBC, 2016, before the Adjudicating Authority. The Adjudicating Authority admitted the application. The Committee of Creditors (CoC) has not been constituted as of the hearing date. The parties are exploring the possibility of further settlement.

## Issues and analysis

### Issue 1: Whether the application filed by Respondent No. 1 under Section 7 of the IBC, 2016, was justified …

**Ratio:** Section 7 of the IBC, 2016 allows a financial creditor to initiate corporate insolvency

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**Reasoning:** The court acknowledged that Respondent No. 1 filed the application under Section 7 of the

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**Interpretation:** Section 7 of IBC provides a mechanism for creditors to initiate insolvency

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**Application:** Respondent No. 1's application under Section 7 is based on the appellant's

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## Parties

- **Judges:** Jarat Kuma…; Ashok Kumar…
- **Respondents:** Nalin Virj…; Satish Sadashiv…

## Timeline

- **2021-08-06 — Hearing…**: Court heard Mr. Krishnendu Datta, Ld. Sr. Counsel for the Appellant / 'Corporate Debtor'.…
- **2016-01-01 — Application u…**: Respondent No. 1 filed an application before the Ld. Adjudicating Authority u/s 7 of the…

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