# In the matter of R. G. Prasad Rao & Ors. vs. V V Anand & Anr.

> NCLAT judgment dated 2024-07-31. Citation: TCN-2024-NCLAT-00287. The appeal was filed by the Appellant challenging the order dated 11.10.2023 passed by the…

- **Court:** NCLAT
- **Order date:** 31 Jul 2024
- **Citation:** TCN-2024-NCLAT-00287
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/r-g-prasad-rao-ors-vs-v-v-anand-anr-4e80ba85

## Summary

### Background

The appeal was filed by the Appellant challenging the order dated 11.10.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench-I) in I.A. 3010 of 2021 & I.A. 3844 of 2023 in C.P. (IB) 1197/C-I/MB/2017, by which Order the Liquidator has been appointed. An Additional Affidavit has been filed by the Appellant in compliance of the Order dated 10.07.2024. The Stakeholders Consultation Committee has already held its Meeting on 20.07.2024 where resolution regarding settlement was discussed.

## Facts

R.G. Prasad Rao filed appeals challenging the liquidation order passed by the Adjudicating Authority (NCLT, Mumbai). The appeals are Comp. App. (AT) (Insolvency) No. 1697 of 2023 and Comp. App. (AT) (Insolvency) No. 1699 of 2023. The Union Bank of India and V V Anand & Anr are the respondents. The bank approved a one-time settlement (OTS) with the corporate debtor. The Stakeholders Consultation Committee held a meeting on 20.07.2024, where the settlement was discussed. The suspended director committed to bearing the liquidation costs after July 8, 2024. The Interim Resolution Professional (IRP) claimed Rs. 5.77 Lakhs as CIRP cost. The Liquidator will place the entire liquidation cost before the committee. The appellant undertakes to give the Demand Draft of Rs.5.77

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## Issues and analysis

### Issue 1: Whether the Liquidation Order dated …

**Ratio:** The court has the power to set aside a liquidation order if it finds that there is no

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**Reasoning:** The court noted the OTS accepted by the bank and the decision of the Stakeholders

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**Interpretation:** The court interpreted that the continuation of the liquidation order would be

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**Application:** Given the OTS and the stakeholders' decision, the court applied the principle

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** R. G. Pras…
- **Respondents:** V V A…
- **Advocates:** Aditi S…; Nilesh S…; +4 more

## Timeline

- **2023-10-11 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal, Mumbai Bench-I) passed an…
- **2024-05-20 — Bank Approv…**: The Bank approved the One-Time…

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