# In the matter of Rohit Ramesh Vs. J. Sridhar, Sole Proprietor, Loyal Enterprises & Ors. CA(AT)(Ins) No. 1527 of 2019

> NCLAT judgment dated 2020-01-06. Citation: TCN-2020-NCLAT-00584. The case involves a Company Appeal (AT) (Insolvency) No. 1527 of 2019 before the National…

- **Court:** NCLAT
- **Order date:** 6 Jan 2020
- **Citation:** TCN-2020-NCLAT-00584
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rohit-ramesh-vs-j-sridhar-sole-proprietor-loyal-enterprises-ors-ca-afa1f869

## Summary

### Background

The case involves a Company Appeal (AT) (Insolvency) No. 1527 of 2019 before the National Company Law Appellate Tribunal, New Delhi. The appellant, Rohit Ramesh, filed a case against the respondent, J. Sridhar, Sole Proprietor, Loyal Enterprises & Ors. The learned counsel for the Appellant submitted that before the constitution of the Committee of Creditors, the Memorandum of Terms of Compromise between the Operational Creditor and Appellant – Director was filed before the Adjudicating Authority (National Company Law Tribunal), Division Bench Chennai on 9th December, 2019. The Committee of Creditors having been constituted subsequently, the Adjudicating Authority could have entertained the matter under Rule 11 of the NCLT Rules, 2016, instead of application under

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## Facts

Rohit Ramesh filed an appeal against J. Sridhar, Sole Proprietor, Loyal Enterprises & Ors. A Memorandum of Terms of Compromise between the Operational Creditor and Appellant – Director was filed with the Adjudicating Authority before the Committee of Creditors was constituted. The Adjudicating Authority was the National Company Law Tribunal, Division Bench Chennai. The filing occurred on December 9, 2019. The Corporate Debtor is involved in the football league business, specifically the India Super League (ISL). The Interim Resolution Professional is directed to ensure the company remains a going concern and is authorized to sign bank cheques with counter signature. The bank accounts of the Corporate Debtor are allowed to be operated for day-to-day functioning.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority could have entertained the matter under Rule 11 of the NCLT …

**Ratio:** The ratio is based on the interpretation and application of Rule 11 of the NCLT Rules,

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**Reasoning:** The court reasoned that since the Committee of Creditors was constituted after the

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**Interpretation:** The interpretation involves understanding the interplay between Section 12A of

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**Application:** The application of the ratio and reasoning to the facts suggests that the

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Rohit R…
- **Respondents:** J. Sri…

## Timeline

- **2019-12-09 — Filing of Memorandum of…**: The Memorandum of Terms of Compromise between the Operational Creditor and Appellant –…
- **2020-01-06 — Court Or…**: Learned counsel for the Appellant submits arguments. Court orders notice to be issued to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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