# In the matter of Tapan Basu Roy Vs. Blue Star Ltd. & Anr. CA(AT)(Insolvency) No. 127-2019

> NCLAT judgment dated 2019-07-04. Citation: TCN-2019-NCLAT-00481. The case involves an appeal against an order related to an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 4 Jul 2019
- **Citation:** TCN-2019-NCLAT-00481
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/tapan-basu-roy-vs-blue-star-ltd-anr-ca-939782c8

## Summary

### Background

The case involves an appeal against an order related to an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) filed by Blue Star Limited (‘Operational Creditor') against M/s Westwind Engineers Private Limited (‘Corporate Debtor'). The application was admitted on December 4, 2018. The appeal was preferred by Mr. Tapan Basu Roy, Director of M/s Westwind Engineers Private Limited. During the proceedings, the parties informed the court that a settlement had been reached before the constitution of the Committee of Creditors.

## Facts

Blue Star Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Westwind Engineers Private Limited, the Corporate Debtor. The application was admitted on December 4, 2018. Tapan Basu Roy, Director of Westwind Engineers Private Limited, filed an appeal. During the proceedings on July 2, 2019, the parties informed the court that they had reached a settlement before the constitution of the Committee of Creditors. The terms of the settlement were presented to the court. The Resolution Professional's counsel stated that the Committee of Creditors had not yet been constituted and that the Resolution Professional had incurred costs of Rs.3,50,000. The Corporate Debtor agreed to pay the Resolution

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## Issues and analysis

### Issue 1: Whether the settlement reached between the parties before the constitution of the Committee of …

**Ratio:** Rule 11 of the NCLAT Rules, 2016 allows the court to exercise its powers to accept the

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**Reasoning:** The court considered the submissions of the counsels and the fact that the parties had

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**Interpretation:** Rule 11 of the NCLAT Rules, 2016 provides the NCLAT with broad powers to ensure

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**Application:** The court applied Rule 11 of the NCLAT Rules, 2016 to accept the settlement

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Tapan Bas…
- **Respondents:** Westwind Engineers…; Blue Star…

## Timeline

- **2018-12-04 — Impugned Ord…**: Date of the impugned order that was later…
- **2019-06-26 — Settlement…**: Parties reached a settlement before the…

## 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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