# In the matter of Shri Kapil Mittal Suspended Director Of Alumass Pvt.  Ltd.  Vs Small Industries Development Bank Of India & Anr.

> NCLAT judgment dated 2024-04-19. Citation: TCN-2024-NCLAT-00494. The case involves an appeal against the order dated 04.04.2024 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 19 Apr 2024
- **Citation:** TCN-2024-NCLAT-00494
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/shri-kapil-mittal-suspended-director-of-alumass-pvt-ltd-vs-small-industries-deve-b5e092e8

## Summary

### Background

The case involves an appeal against the order dated 04.04.2024 passed by the Adjudicating Authority (National Company Law Tribunal), Indore Bench, Court No.1, which admitted a Section 7 application filed by Small Industries Development Bank of India. The appellant, Shri Kapil Mittal, is the Suspended Director of Alumass Pvt. Ltd. (formerly known as Tirupati Balaji Extrusion Pvt. Ltd.).

## Facts

Shri Kapil Mittal, the Suspended Director of Alumass Pvt. Ltd. (formerly known as Tirupati Balaji Extrusion Pvt. Ltd.), filed an appeal against the order dated 04.04.2024 passed by the Adjudicating Authority (NCLT, Indore Bench) admitting a Section 7 application filed by Small Industries Development Bank of India. Subsequent to the order, the Financial Creditor approved an OTS, and the entire payment under the OTS was made by 12.04.2024. The Financial Creditor's counsel acknowledged the settlement and payment. The NCLAT considered these facts and decided to set aside the order initiating CIRP.

## Issues and analysis

### Issue 1: Whether the CIRP should continue given the settlement and payment received by the Financial …

**Ratio:** The principle is that if the financial creditor has been satisfied through a settlement

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**Reasoning:** The court reasoned that since the Financial Creditor had received the payment under the

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**Interpretation:** This interprets the IBC to allow for settlements and OTS schemes to take

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Kapil M…
- **Respondents:** Alumass Pvt…; Small Industries…
- **Advocates:** Kushal B…; Roshan…

## Timeline

- **2024-04-04 — Order by Adjudicating…**: The Adjudicating Authority (NCLT, Indore Bench) passed an order admitting a Section 7…
- **2024-04-10 — OTS Appr…**: The Financial Creditor approved…

## 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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