# In the matter of Rajan Mayor vs. Eternity Footwear Pvt. Ltd. & Anr. Company Appeal (AT) (Insolvency) No. 420 of 2022

> NCLAT judgment dated 2022-05-24. Citation: TCN-2022-NCLAT-00466. The case involves an appeal against an order dated 2022-04-11 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 24 May 2022
- **Citation:** TCN-2022-NCLAT-00466
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajan-mayor-vs-eternity-footwear-pvt-ltd-anr-company-appeal-7b45d78a

## Summary

### Background

The case involves an appeal against an order dated 2022-04-11 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, which admitted an application filed under Section 9 of the 'I&B Code' by the Respondent No.1. An I.A No. 1464 of 2022 was filed with a Settlement Agreement dated 2022-05-10, indicating that the parties had settled the matter and the Respondent No.1 sought permission to withdraw the application.

## Facts

Rajan Mayor filed an appeal against Eternity Footwear Pvt. Ltd. & Anr. The appeal contested an order dated 2022-04-11 by the National Company Law Tribunal, New Delhi, which admitted an application under Section 9 of the I&B Code filed by Respondent No. 1. During the appeal process, a settlement agreement dated 2022-05-10 was presented, indicating that the parties had resolved the matter. The appellant's counsel stated that the IRP had been paid Rs. 2 Lakh, with expenses limited to publication. The IRP's counsel confirmed publication expenses and a visit to the CAG office. The court determined that the IRP could retain Rs. 1 Lakh and return the remaining Rs. 1 Lakh.

## Issues and analysis

### Issue 1: Whether the Respondent No.1 should be permitted to withdraw the application in view of the …

**Ratio:** Parties are allowed to settle matters between themselves, and the court recognizes and

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**Reasoning:** The court acknowledged the settlement agreement brought on record and considered it

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**Interpretation:** The court interprets the settlement agreement as a valid resolution between the

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**Application:** Based on the settlement agreement, the Respondent No.1 was permitted to

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## Parties

- **Judges:** Ashok Bh…; Shreesha…; +1 more
- **Appellants:** Rajan M…
- **Respondents:** Eternity Footwear…
- **Advocates:** Deepak B…; Arun Sa…; +1 more

## Timeline

- **2022-04-11 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi, passed an order…
- **2022-04-19 — Stay Ord…**: The court stayed further steps in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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