# In the matter of Vidhi Goel vs. State Bank of India & Ors.

> NCLAT judgment dated 2023-08-10. Citation: TCN-2023-NCLAT-00292. The case involves an appeal against an order dated 15.05.2023 by which the Adjudicating…

- **Court:** NCLAT
- **Order date:** 10 Aug 2023
- **Citation:** TCN-2023-NCLAT-00292
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vidhi-goel-vs-state-bank-of-india-ors-170fa284

## Summary

### Background

The case involves an appeal against an order dated 15.05.2023 by which the Adjudicating Authority admitted a Section 7 application. An application (I.A. No. 3656 of 2023) was filed jointly by the appellant and respondent to bring on record a settlement term between the parties dated 25.07.2023. It was submitted that ‘Phoenix Arc Pvt. Ltd.' has restructured the debt of the appellant.

## Facts

Vidhi Goel filed an appeal against an order dated 15.05.2023, where the Adjudicating Authority admitted a Section 7 application. Vidhi Goel is the appellant, and State Bank of India & Ors. are the respondents. The appellant and respondent jointly filed I.A. No. 3656 of 2023 to bring on record a settlement agreement dated 25.07.2023. Phoenix Arc Pvt. Ltd. restructured the debt of the appellant. The restructuring of the debt led the court to believe that the basis for the Section 7 application no longer existed. The settlement agreement between the parties is a key fact, as it led to the closure of the CIRP and the release of the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether the Corporate Insolvency Resolution Process (CIRP) should be continued given the settlement …

**Ratio:** When a settlement agreement is reached between the parties and the debt of the corporate

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**Reasoning:** The court reasoned that the settlement agreement and the restructuring of the appellant's

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**Interpretation:** This legal issue involves the interpretation of the Insolvency and Bankruptcy

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**Application:** In this case, the settlement agreement and debt restructuring directly

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Vidhi…
- **Respondents:** State Bank of…

## Timeline

- **2023-05-15 — Order by Adjudicating…**: The Adjudicating Authority…
- **2023-07-25 — Settlement Ag…**: Settlement term between…

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