# In the matter of Vishnu Aggarwal & Anr Vs. Ashok Kumar Sharma Company Appeal (AT) (Insolvency) No. 556 of 2019

> NCLAT judgment dated 2019-05-29. Citation: TCN-2019-NCLAT-00527. This is an appeal preferred by the Appellant, Director of M/s Jay Sai Ram Steel Pvt. Ltd.,…

- **Court:** NCLAT
- **Order date:** 29 May 2019
- **Citation:** TCN-2019-NCLAT-00527
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vishnu-aggarwal-anr-vs-ashok-kumar-sharma-company-appeal-27a540ae

## Summary

### Background

This is an appeal preferred by the Appellant, Director of M/s Jay Sai Ram Steel Pvt. Ltd., challenging the order dated 16th May, 2019, passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, which admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) preferred by the Respondent, Ashok Kumar Sharma, Proprietor, Alloysmin Industries (Operational Creditor). The matter was taken up on 23rd of May, 2019, when the Appellant's counsel submitted that the Appellant is ready with the draft of the original amount of Rs.4,97,699/- for payment to the Operational Creditor.

## Facts

The Appellant, M/s Jay Sai Ram Steel Pvt. Ltd., filed an appeal against the order of the Adjudicating Authority (NCLT) which admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by the Respondent, Ashok Kumar Sharma, Proprietor, Alloysmin Industries (Operational Creditor). The Respondent claimed an amount of Rs.4,97,699/-. During the proceedings, the Appellant agreed to pay the outstanding amount to the Operational Creditor. The Interim Resolution Professional (IRP) had been appointed, but no Committee of Creditors (CoC) was formed. The IRP had incurred costs of Rs.25,000/-. The Appellant agreed to settle the matter, and the court allowed the settlement. The key fact is the settlement between the parties, leading to the setting

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order admitting the application under Section 9 of the …

**Ratio:** The principle is that parties are allowed to settle disputes, and courts generally

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**Reasoning:** The court reasoned that since the parties had reached a settlement and the Appellant was

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**Interpretation:** This interprets the IBC as allowing for flexibility in resolving disputes,

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**Application:** In this case, the settlement between the Appellant and Respondent allowed the

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Appellants:** Vishnu Ag…
- **Respondents:** M/s Jay Sai Ram…; Ashok Kumar…

## Timeline

- **2019-05-16 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, passed an…
- **2019-05-23 — Matter Ta…**: The matter was taken up, and the Appellant's counsel submitted that the Appellant is…

## 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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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/vishnu-aggarwal-anr-vs-ashok-kumar-sharma-company-appeal-27a540ae