# In the matter of Nimish Mansukhlal Vora Vs. S. J. Impex & Ors. CA (AT) No. 706-2018

> NCLAT judgment dated 2018-12-21. Citation: TCN-2018-NCLAT-00001. The appeal was preferred by Mr. Nimish Mansukhlal Vora, Director and Shareholder of ‘Kavya…

- **Court:** NCLAT
- **Order date:** 21 Dec 2018
- **Citation:** TCN-2018-NCLAT-00001
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/nimish-mansukhlal-vora-vs-s-j-impex-ors-ca-096fa59e

## Summary

### Background

The appeal was preferred by Mr. Nimish Mansukhlal Vora, Director and Shareholder of ‘Kavya Build-Con Private Limited' ('Corporate Debtor'), against the order dated 31st October 2018 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai. The Adjudicating Authority had admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (‘I&B Code') filed by ‘M/s. S.J. Impex' ('Financial Creditor').

## Facts

Mr. Nimish Mansukhlal Vora, Director and Shareholder of Kavya Build-Con Private Limited (Corporate Debtor), filed an appeal against the order of the Adjudicating Authority (NCLT), Mumbai, which admitted an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 filed by M/s. S.J. Impex (Financial Creditor). The parties were negotiating for settlement after the application was filed but before its admission. The Financial Creditor had previously filed a Company Petition No. 1175 of 2017, which was dismissed based on consent terms. The earlier settlement terms stipulated that the Financial Creditor could only move for relief in case of two consecutive defaults. The Adjudicating Authority did not consider these facts. The Appellant provided email

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the application under Section 7 of the …

**Ratio:** The Adjudicating Authority should consider ongoing settlement negotiations between

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**Reasoning:** The court found that the parties were negotiating for settlement and had requested the

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**Interpretation:** This implies that the Adjudicating Authority has a duty to consider any ongoing

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**Application:** In this case, the court found that the Adjudicating Authority did not consider

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Nimish Mansukhlal…
- **Respondents:** Kavya Build-Con…; M/s. S.J.…

## Timeline

- **2018-10-31 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal) passed an order admitting the…
- **2018-12-21 — Appeal Pre…**: Mr. Nimish Mansukhlal Vora, Director and Shareholder of ‘Kavya Build-Con Private…

## 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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