# In the matter of Sachin Malde vs. Hemant Nanji Chheda & Anr.

> NCLAT judgment dated 2025-04-02. Citation: TCN-2025-NCLAT-00134. The case involves a Company Appeal (AT) (Insolvency) No. 123 of 2024 filed challenging an…

- **Court:** NCLAT
- **Order date:** 2 Apr 2025
- **Citation:** TCN-2025-NCLAT-00134
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sachin-malde-vs-hemant-nanji-chheda-anr-ca1f3c0e

## Summary

### Background

The case involves a Company Appeal (AT) (Insolvency) No. 123 of 2024 filed challenging an order passed by the Adjudicating Authority on 02.01.2024, which admitted a Section 7 application filed by the Financial Creditor, Hemant Nanji Chheda. An interim order was passed by the Tribunal on 19.01.2024. The appellant had filed an application raising the maintainability of the application, stating that the Corporate Debtor did not wish to file any reply. The appellant was ready to deposit Rs. 5 Crore before the Tribunal to show bonafide. An I.A. No.1617 of 2025 was filed by the Appellant bringing on record settlement/consent terms between the parties dated 02.01.2024, under which the Financial Creditors agreed to receive Rs. 5,00,00,000/- to settle the entire claim. The RP

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## Facts

The Adjudicating Authority admitted a Section 7 application filed by Financial Creditor Hemant Nanji Chheda on 02.01.2024. The Appellant, Sachin Malde, challenged this order. The Appellant claimed the Corporate Debtor did not wish to file a reply and filed an application for modification of the order. The Appellant offered to deposit Rs. 5 Crore to demonstrate bonafide. A settlement was reached between the parties on 02.01.2024, with the Financial Creditors agreeing to receive Rs. 5,00,00,000/-. The RP issued a publication inviting claims, but no other claims were received besides the Financial Creditor's. The Financial Creditor had already deposited Rs. 3,00,000/- for the IRP's fees and expenses. The interim order stayed further steps. The key fact is the settlement

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order admitting the Section 7 application should be set aside …

**Ratio:** In appropriate cases, inherent power can be exercised to close the proceedings, as laid

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**Reasoning:** The court reasoned that a settlement had been reached between the parties, and there were

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**Interpretation:** The Supreme Court's judgment allows for the use of inherent powers to close

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**Application:** The court applied this principle to the present case, noting the settlement and

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Sachin…
- **Respondents:** Hemant Nanji…
- **Advocates:** Krishnendu…; Anish Ag…; +4 more

## Timeline

- **2024-01-02 — Order by Adjudicating…**: Adjudicating Authority passed an order…
- **2024-01-19 — Interim…**: Tribunal passed an…

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