# In the matter of Suresh Chandra Jena Vs.
Totale Global Pvt. Ltd. & Ors Company Appeal (AT) (Insolvency) No. 986 of 2022

> NCLAT judgment dated 2022-08-23. Citation: TCN-2022-NCLAT-00268. The appeal was filed by the Erstwhile IRP challenging the order passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 23 Aug 2022
- **Citation:** TCN-2022-NCLAT-00268
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/suresh-chandra-jena-vs-totale-global-pvt-ltd-ors-company-appeal-068492f7

## Summary

### Background

The appeal was filed by the Erstwhile IRP challenging the order passed by the Adjudicating Authority in I.A. No. 1836 of 2021, which was filed by the Suspended Director of the Corporate Debtor seeking acceptance of a settlement between the parties. The Adjudicating Authority allowed the application filed by the Suspended Director and closed the CIRP proceedings, deeming other applications infructuous. The Appellate Tribunal had previously directed the IRP to file an application under Section 12A, which was subsequently filed.

## Facts

The Erstwhile IRP filed an appeal challenging the Adjudicating Authority's order in I.A. No. 1836 of 2021, which was filed by the Suspended Director of the Corporate Debtor seeking acceptance of a settlement. The Adjudicating Authority allowed the application and closed the CIRP proceedings. The appellant's counsel argued that the IRP filed the application with a delay due to the incomplete Form FA and that the Operational Creditor had not paid Rs. 2 Lakhs to the IRP. The Appellate Tribunal had previously directed the IRP to file an application under Section 12A. The Adjudicating Authority considered all relevant facts before allowing the application. The court directed the Operational Creditor to pay Rs. 2 Lakhs to the IRP within four weeks and instructed the IBBI to

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in allowing the application filed by the Suspended …

**Ratio:** The Adjudicating Authority has the power to consider settlements between parties and

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**Reasoning:** The court found that the Adjudicating Authority had considered all relevant facts before

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**Interpretation:** This confirms the Adjudicating Authority's discretion in accepting settlements

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**Application:** The court applied this principle to the specific facts, finding no error in the

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Suresh Chandra…
- **Respondents:** Totale Global…
- **Advocates:** Ashish Ma…; Deep B…

## Timeline

- **2022-08-23 — Appeal F…**: The Erstwhile IRP filed an appeal challenging the order passed by the Adjudicating…
- **2021-01-01 — I.A. No. 183…**: I.A. No. 1836 of 2021 was filed by the Suspended Director of the Corporate Debtor seeking…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

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