# In the matter of Sh. Phool Chand Goyal Vs. Avneet Goyal & Anr. CA(AT)(Ins) No. 1393 of 2019

> NCLAT judgment dated 2020-02-07. Citation: TCN-2020-NCLAT-00430. The case involves an appeal against an order passed by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 7 Feb 2020
- **Citation:** TCN-2020-NCLAT-00430
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sh-phool-chand-goyal-vs-avneet-goyal-anr-ca-284ecc2e

## Summary

### Background

The case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, in a company petition. The appellant, Sh. Phool Chand Goyal, filed the appeal on the grounds that the matter had been settled with the operational creditor, M/s R.B. Enterprises, before the constitution of the Committee of Creditors. The operational creditor appeared and accepted that the parties had settled. An intervention application was filed by Mr. Rishu Goyal, opposing the settlement. The Adjudicating Authority admitted the application on 7th November 2019.

## Facts

Sh. Phool Chand Goyal, the appellant, filed an appeal against an order by the National Company Law Tribunal (NCLT), New Delhi. The basis of the appeal was that a settlement had been reached with the operational creditor, M/s R.B. Enterprises, before the Committee of Creditors was formed. Avneet Goyal, representing M/s R.B. Enterprises, confirmed the settlement. A settlement deed dated 27th November 2019, was presented as evidence of the agreement. Mr. Mahesh Taneja was appointed as the IRP. An intervention application was filed by Mr. Rishu Goyal, opposing the settlement, claiming outstanding dues. The NCLT admitted the application on 7th November 2019. The appellant agreed to pay the IRP fees. The settlement involved a payment of Rs. 1582410.10 from Sh. Phool Chand to

…

## Issues and analysis

### Issue 1: Whether the settlement reached between the appellant and the operational creditor before the …

**Ratio:** Rule 11 of the NCLAT Rules, 2016 allows the appellate tribunal to exercise its inherent

…

**Reasoning:** The court considered the settlement deed and the submissions made by both parties, noting

…

**Interpretation:** The court interpreted Rule 11 of the NCLAT Rules, 2016, as providing the

…

**Application:** The court applied Rule 11 of the NCLAT Rules, 2016, to the facts of the case,

…

## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Sh. Phool Chand…
- **Respondents:** M/s Black Diamond…; Avneet…
- **Advocates:** Vikas M…; Ajay K…; +3 more

## Timeline

- **2019-11-07 — Order by…**: National Company Law Tribunal…
- **2019-11-11 — Public Annou…**: A public announcement…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/sh-phool-chand-goyal-vs-avneet-goyal-anr-ca-284ecc2e