# In the matter of Sanjeev Arora
Vs.
Knight Frank (India) Pvt. Ltd. & Anr. Company Appeal (AT) (Insolvency) No. 656 of 2022

> NCLAT judgment dated 2022-07-13. Citation: TCN-2022-NCLAT-00368. The appeal was filed against the order dated 27.05.2022 passed by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 13 Jul 2022
- **Citation:** TCN-2022-NCLAT-00368
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sanjeev-arora-vs-knight-frank-982e200f

## Summary

### Background

The appeal was filed against the order dated 27.05.2022 passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench-III, which initiated CIRP against the Corporate Debtor based on an application filed by the Operational Creditor (Respondent No.1) under Section 9 of the I&B Code. The appellant, the suspended director of the Corporate Debtor, filed the appeal. An application (I.A. No. 2070 of 2022) was filed by the Appellant bringing on record the Settlement Agreement dated 28.06.2022 between the Appellant and the Operational Creditor, indicating full payment to the Operational Creditor.

## Facts

The Adjudicating Authority initiated CIRP against the Corporate Debtor based on an application by the Operational Creditor under Section 9 of the I&B Code. The Suspended Director of the Corporate Debtor filed an appeal against this order. A Settlement Agreement was reached between the Appellant and the Operational Creditor, with the Appellant making full payment to the Operational Creditor. The Operational Creditor is the sole member of the Committee of Creditors (CoC). The IRP's counsel submitted that some expenses are still pending, amounting to Rs.4.36 Lakhs, which the Appellant has undertaken to pay. The Settlement Agreement contains a statement that the Appellant will make payment to the IRP. The Operational Creditor has given consent to the Settlement Agreement.

## Issues and analysis

### Issue 1: Whether formal approval from the CoC is required when the Operational Creditor is the sole member …

**Ratio:** When the Operational Creditor constitutes 100% of the Committee of Creditors (CoC) and

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**Reasoning:** The court reasoned that since the Operational Creditor is the sole member of the CoC,

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**Interpretation:** This interprets the requirement for CoC approval in the context of insolvency

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**Application:** In this case, the Operational Creditor, being the sole member of the CoC, had

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Sanjeev…
- **Respondents:** Knight Frank…

## Timeline

- **2022-05-27 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench-III, passed…
- **2022-06-28 — Settlement Ag…**: A Settlement Agreement was dated between the…

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