# In the matter of Vikram B Lakhani
Vs.
INOX Leisure Limited & Anr. Company Appeal (AT) (Insolvency) No. 925 of 2022

> NCLAT judgment dated 2022-08-26. Citation: TCN-2022-NCLAT-00260. The appeal was filed against an order dated 11.07.2022 passed in C.P. (IB) No. 1270/MB/2020,…

- **Court:** NCLAT
- **Order date:** 26 Aug 2022
- **Citation:** TCN-2022-NCLAT-00260
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vikram-b-lakhani-vs-inox-leisure-limited-anr-company-appeal-b26f8704

## Summary

### Background

The appeal was filed against an order dated 11.07.2022 passed in C.P. (IB) No. 1270/MB/2020, where a Section 9 application was admitted by the Adjudicating Authority. The Suspended Director of the Corporate Debtor filed the appeal. An interim order was issued on 04.08.2022, deferring the constitution of the Committee of Creditors (CoC) for two weeks. The parties submitted that the CoC had not yet been constituted. An I.A. No. 2987 of 2022 was filed, bringing the Settlement Agreement between the parties dated 22.08.2022 on record. The Operational Creditor and the Corporate Debtor settled the dispute, with terms and conditions of payment of debt provided in the Settlement Agreement. The Operational Creditor requested permission to withdraw the Section 9 Application.

## Facts

Vikram B Lakhani, Director of Orienta Cine Advertising Pvt. Ltd., filed an appeal against the order dated 11.07.2022 in C.P. (IB) No. 1270/MB/2020, which admitted a Section 9 application. INOX Leisure Limited & Anr. are the respondents. The appeal was taken up on 04.08.2022, resulting in an interim order deferring the constitution of the CoC for two weeks. A settlement agreement dated 22.08.2022 was filed, indicating that the Operational Creditor and the Corporate Debtor had settled their dispute. The Operational Creditor sought to withdraw the Section 9 application based on this settlement. The court then allowed the withdrawal of the Section 9 application and set aside the order admitting it.

## Issues and analysis

### Issue 1: Whether the Operational Creditor should be allowed to withdraw the Section 9 application based on …

**Ratio:** A settlement agreement between the Operational Creditor and the Corporate Debtor provides

…

**Reasoning:** The court reasoned that since the parties had reached a settlement, allowing the

…

**Interpretation:** The interpretation is that the court recognizes and encourages settlements

…

**Application:** The court applied the ratio by allowing the Operational Creditor to withdraw

…

## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Vikram B L…
- **Respondents:** INOX Leisure…

## Timeline

- **2022-07-11 — Order Pa…**: Order passed in C.P. (IB) No.…
- **2022-08-04 — Interim…**: Interim order issued deferring 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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