# In the matter of Shiv Kumar Eashwaran Vs. NTC Logistics India (P) Ltd. Company Appeal (AT) (Insolvency) No. 1374-2019

> NCLAT judgment dated 2019-12-10. Citation: TCN-2019-NCLAT-00039. NTC Logistics India (P) Ltd., an operational creditor, filed an application under Section 9…

- **Court:** NCLAT
- **Order date:** 10 Dec 2019
- **Citation:** TCN-2019-NCLAT-00039
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/shiv-kumar-eashwaran-vs-ntc-logistics-india-a5df27bf

## Summary

### Background

NTC Logistics India (P) Ltd., an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating the Corporate Insolvency Resolution Process (CIRP) against M/s Canadian Crystalline Water India Limited, the corporate debtor. The National Company Law Tribunal (NCLT), Division Bench-I, Chennai, admitted the application on November 7, 2019. This admission was challenged in the present appeal.

## Facts

NTC Logistics India (P) Ltd. initiated CIRP against M/s Canadian Crystalline Water India Limited by filing an application under Section 9 of the IBC. The NCLT admitted the application on November 7, 2019. An appeal was filed against the NCLT's order. During the appeal proceedings, the appellant claimed to have settled the matter with the respondent (operational creditor). The Committee of Creditors had not been constituted. The Interim Resolution Professional (IRP) had worked for about 20 days and incurred costs, but had not been fully paid. The IRP was owed a sum of Rs. 2.75 Lakh. The appellant had already paid Rs. 2 Lakh to the IRP. The NCLAT considered the settlement between the parties and the outstanding payment to the IRP. The relevance of the settlement is that

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## Issues and analysis

### Issue 1: Whether the NCLAT can set aside the order of the Adjudicating Authority admitting the application …

**Ratio:** Rule 11 of the NCLAT Rules, 2016, confers power on the NCLAT to exercise its inherent

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**Reasoning:** The NCLAT considered the fact that the parties had settled the matter. It relied on its

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**Interpretation:** This legal issue concerns the NCLAT's power to intervene in cases where parties

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**Application:** In this case, the parties had settled the matter, and the NCLAT applied Rule 11

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Shiv Kumar…
- **Respondents:** M/s Canadian…; NTC Logistics…

## Timeline

- **2019-12-10 — Application under…**: NTC Logistics India (P) Ltd. filed an application under Section 9 of the Insolvency and…
- **2019-11-07 — NCLT admits ap…**: The Adjudicating Authority (National Company Law Tribunal), Division Bench-I, Chennai,…

## 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)

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