# In the matter of Shyam Kumar Garg Vs. Sunrise 14 AS Denmark & Anr. CA(AT)(Insolvency) No. 587-2019

> NCLAT judgment dated 2019-06-10. Citation: TCN-2019-NCLAT-00511. Sunrise 14 A/S Denmark, a financial creditor, filed an application under Section 7 of the…

- **Court:** NCLAT
- **Order date:** 10 Jun 2019
- **Citation:** TCN-2019-NCLAT-00511
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/shyam-kumar-garg-vs-sunrise-14-as-denmark-anr-ca-8b494f3a

## Summary

### Background

Sunrise 14 A/S Denmark, a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Metalore Overseas Pvt. Ltd., the corporate debtor. The National Company Law Tribunal (NCLT), Principal Bench, New Delhi, admitted the application via an order dated May 13, 2019. Shyam Kumar Garg, a shareholder of Metalore Overseas Pvt. Ltd., filed an appeal against this order. During the pendency of the appeal, the parties reached a settlement, and a settlement agreement was executed on June 4, 2019.

## Facts

Sunrise 14 A/S Denmark ('Financial Creditor') filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Metalore Overseas Pvt. Ltd. ('Corporate Debtor'). The NCLT admitted the application on May 13, 2019. Shyam Kumar Garg, a shareholder of Metalore Overseas Pvt. Ltd., appealed the NCLT's decision. During the appeal, the parties reached a settlement where Metalore Promotors agreed to pay USD 150,000 to Sunrise 14 A/S Denmark. The outstanding amount payable by Metalore to MTF as of May 1, 2018, was USD 222,722. The Interim Resolution Professional (IRP), Mr. Anil Bhatia, had incurred expenses of Rs.1,65,000 and worked for 30 days. The settlement was conditional upon the IRP transferring the settlement amount to MTF's designated account upon

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## Issues and analysis

### Issue 1: Whether the settlement reached between the parties should be allowed and the impugned order of the …

**Ratio:** The National Company Law Appellate Tribunal Rules, 2016, Rule 11 provides for the

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**Reasoning:** The tribunal considered the fact that the parties had settled the matter and exercised

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**Interpretation:** Rule 11 of the National Company Law Appellate Tribunal Rules, 2016, allows the

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**Application:** The tribunal applied Rule 11 to the present case, allowing the settlement and

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Shyam Kuma…
- **Respondents:** Metalore Overseas…; Sunrise 14-A/S…

## Timeline

- **2019-05-13 — NCLT Ord…**: The National Company Law Tribunal (NCLT), Principal Bench, New Delhi, admitted the…
- **2019-05-29 — Settlement in…**: Counsel for the Appellant submitted that the…

## 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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