# In the matter of Sunil Ghorawat Vs. Arvind Envisol Ltd. & Anr. CA(AT)(Insolvency) No. 100-2019

> NCLAT judgment dated 2019-03-01. Citation: TCN-2019-NCLAT-00743. Mr. Sunil Ghorawat, Director of M/s. Earth Water Limited (Corporate Debtor), filed an appeal…

- **Court:** NCLAT
- **Order date:** 1 Mar 2019
- **Citation:** TCN-2019-NCLAT-00743
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sunil-ghorawat-vs-arvind-envisol-ltd-anr-ca-9a994005

## Summary

### Background

Mr. Sunil Ghorawat, Director of M/s. Earth Water Limited (Corporate Debtor), filed an appeal against the order dated January 15, 2019, passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi. The Adjudicating Authority had admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, preferred by the Respondent, M/s. Arvind Envisol Limited, and had passed an order of moratorium and appointed an Interim Resolution Professional. The Appellant contended that the order was passed ex parte without notice. The parties informed the court that they had reached a settlement.

## Facts

Mr. Sunil Ghorawat, Director of M/s. Earth Water Limited, filed an appeal against an order passed by the Adjudicating Authority (NCLT) on January 15, 2019. The NCLT had admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by M/s. Arvind Envisol Limited, initiating insolvency proceedings against Earth Water Limited. The NCLT's order included a moratorium and the appointment of an Interim Resolution Professional. The appellant argued that the order was passed ex parte. The parties informed the court that they had reached a settlement. Two drafts for Rs. 52,23,500/- and Rs. 10,18,583/- both dated 8th February, 2019 issued by the Union Bank of India, Sushant Lok, in the name of ‘Arvind Envisol Ltd.' are being handed over to Mr. Kunal,

…

## Issues and analysis

### Issue 1: Whether the impugned order passed by the Adjudicating Authority is sustainable given the settlement …

**Ratio:** The principle established in 'Swiss Ribbons Pvt. Ltd. & Anr. v. Union of India &

…

**Reasoning:** The court reasoned that since the parties had reached a settlement before the Committee

…

**Interpretation:** This interprets the Supreme Court's ruling in Swiss Ribbons to mean that

…

**Application:** The court applied this principle to the present case, noting that the parties

…

## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Sunil Gho…
- **Respondents:** M/s. Earth Water…; M/s. Arvind…

## Timeline

- **2019-01-15 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal) passed an order admitting the…
- **2019-02-08 — Settlement…**: Two drafts for Rs. 52,23,500/- and Rs. 10,18,583/- were issued by the Union Bank of…

## 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/sunil-ghorawat-vs-arvind-envisol-ltd-anr-ca-9a994005