# In the matter of Sankararaman Vaidyanathan Vs. Val-Met Engineering Pvt. Ltd. & Anr. CA(AT)(Ins)No. 675 of 2019

> NCLAT judgment dated 6 Dec 2019. Citation: TCN-2019-NCLAT-00048. The case originated from an application filed by M/s. Val-Met Engineering Private Limited…

- **Court:** NCLAT
- **Order date:** 6 Dec 2019
- **Citation:** TCN-2019-NCLAT-00048
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sankararaman-vaidyanathan-vs-val-met-engineering-pvt-ltd-anr-ca-edfd4c9c

## Summary

### Background

The case originated from an application filed by M/s. Val-Met Engineering Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate a Corporate Insolvency Resolution Process (CIRP) against M/s. Trusted Aerospace Engineering Private Limited, the Corporate Debtor. The Adjudicating Authority (National Company Law Tribunal, Single Bench, Chennai) admitted this application via an order dated June 21, 2019. This admission led to the present appeal by Mr. Sankararaman Vaidyanathan, the promoter of the Corporate Debtor, before the National Company Law Appellate Tribunal (NCLAT).

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## Facts

M/s. Val-Met Engineering Private Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate a Corporate Insolvency Resolution Process (CIRP) against M/s. Trusted Aerospace Engineering Private Limited, the Corporate Debtor. The Adjudicating Authority (National Company Law Tribunal), Single Bench, Chennai, admitted this application by an order dated June 21, 2019. This admission led to an appeal by Mr. Sankararaman Vaidyanathan, the promoter of the Corporate Debtor.

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## Issues and analysis

### Issue 1: Whether the NCLAT should allow the withdrawal of a Section 7 application under the IBC when the…

**Ratio:** When a financial creditor's claim, which led to the initiation of CIRP under Section 7 of…

**Reasoning:** The NCLAT reasoned that the primary objective of the IBC is to facilitate resolution and…

**Interpretation:** The NCLAT interpreted Section 7 of the IBC and Rule 11 of the NCLAT Rules,…

**Application:** In this case, the appellant deposited Rs. 2.13 crores, the full claim amount,…

## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Advocates:** For Appel…; Nikhil Nayyar,…; +9 more

## Timeline

- **June 21, 2019 — NCLT Ord…**: The Adjudicating Authority (NCLT, Single Bench, Chennai) admitted the application under…
- **July 4, 2019 — Appellant's Initial…**: Learned counsel for the Appellant submitted that the Respondent cannot be treated as a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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