# In the matter of Rajendra Mulchand Verma & Anr.  Vs. K.L.J Resources Ltd. Vs Company Appeal (AT)(Ins) No. 359 of 2020

> NCLAT judgment dated 2022-10-11. Citation: TCN-2022-NCLAT-00167. The appeal was filed against an order dated 20.01.2020 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 11 Oct 2022
- **Citation:** TCN-2022-NCLAT-00167
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rajendra-mulchand-verma-anr-vs-klj-resources-ltd-vs-company-appeal-0d27b7cf

## Summary

### Background

The appeal was filed against an order dated 20.01.2020 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Mumbai) in M.A 3564 of 2019 (Contempt Petition) in C.P. (IB) 1084/(MB)/2019. The Respondent No. 1 had filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against the Appellant for an amount of Rs. 10.92 Crores. During the proceedings, the parties had entered into a settlement on 18.09.2019. Subsequently, the Respondent filed a Contempt Petition alleging breach of the consent terms.

## Facts

Rajendra Mulchand Verma & Anr. (Appellant) faced an insolvency application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by K.L.J. Resources Ltd. & Anr. (Respondent) for Rs. 10.92 Crores. The application was assigned CP (IB) No. 1084/MB/2019. During the proceedings, both parties reached a settlement on 18.09.2019. The Adjudicating Authority allowed the withdrawal of the petition based on the consent terms. Subsequently, the Respondent filed a Contempt Petition (Misc. Application No. 3564 of 2019) alleging a breach of the consent terms. The Adjudicating Authority then ordered the applicant to file an FIR. The Appellant challenged the validity of this order, arguing that filing a contempt petition was unwarranted after the initial petition

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## Issues and analysis

### Issue 1: Whether the Respondent had the jurisdiction to prefer the Contempt Petition instead of filing a …

**Ratio:** The legal principle is that when a petition is withdrawn with liberty to file a fresh

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**Reasoning:** The court reasoned that the Respondent misunderstood the order dated 18.09.2019, which

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**Interpretation:** The interpretation is that when an Adjudicating Authority grants liberty to

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**Application:** In this case, the Respondent should have filed a fresh application under

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## Parties

- **Judges:** Rakesh Kuma…; Kanthi Na…; +2 more
- **Appellants:** Rajendra Mulchand…
- **Respondents:** K.L.J. Resources…

## Timeline

- **2020-01-20 — Order of Adjudicating…**: The Adjudicating Authority passed an order in M.A 3564/2019 in C.P. (IB) 1084/(MB)/2019,…
- **2019-09-18 — Settlement…**: Parties entered into a settlement,…

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