# In the matter of Vikas Goel vs. Ashika Credit Capital Ltd. & Anr. Company Appeal (AT) (Insolvency) No.165 & 166 of 2023

> NCLAT judgment dated 2023-02-20. Citation: TCN-2023-NCLAT-00713. The case involves an appeal against two orders. The first order, dated 2023-01-11, admitted a…

- **Court:** NCLAT
- **Order date:** 20 Feb 2023
- **Citation:** TCN-2023-NCLAT-00713
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vikas-goel-vs-ashika-credit-capital-ltd-anr-company-appeal-65c7d136

## Summary

### Background

The case involves an appeal against two orders. The first order, dated 2023-01-11, admitted a Section 7 application filed by the Financial Creditor. The second order, dated 2023-02-03, permitted the withdrawal of the application by the Financial Creditor, and the application was dismissed as withdrawn. The Financial Creditor had filed a Section 7 application claiming an amount of Rs.2,48,82,875/-. The Corporate Debtor claimed that after the admission order, they settled the matter with the Financial Creditor on 2023-02-02, and a no dues certificate was issued on the same date. On 2023-02-02, the Financial Creditor filed an application for withdrawal of proceedings under Section 7, which came before the Adjudicating Authority on 2023-02-03. The IRP was approached by

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## Facts

The Financial Creditor filed a Section 7 application against the Corporate Debtor claiming Rs. 2,48,82,875/-. The Adjudicating Authority admitted the application on 2023-01-11. Subsequently, the Corporate Debtor and the Financial Creditor settled the matter on 2023-02-02, with the Financial Creditor issuing a no dues certificate on the same date. The Financial Creditor then filed an application to withdraw the Section 7 proceedings, which was permitted by the Adjudicating Authority on 2023-02-03. The IRP was informed of the settlement via email on 2023-02-03. The Appellant (likely the Corporate Debtor) claimed that the settlement amount had already been paid via bank drafts on 2023-02-02. The Financial Creditor confirmed the settlement and their desire not to proceed

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in permitting the withdrawal of the Section 7 …

**Ratio:** The principle is that if parties settle a dispute and the applicant seeks to withdraw the

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**Reasoning:** The court reasoned that the parties had settled the matter, and the Financial Creditor

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**Interpretation:** This issue involves the interpretation of the Adjudicating Authority's power to

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**Application:** In this specific case, the settlement between the Financial Creditor and the

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Vikas…
- **Respondents:** Ashika Credit…

## Timeline

- **2023-01-11 — Initial…**: Adjudicating Authority admitted Section 7…
- **2023-02-02 — Settlement and No Dues…**: Corporate Debtor and Financial Creditor settled the matter; Financial Creditor issued a…

## 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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