# In the matter of LEPL Projects CP(IB) No. 62-9-HDB-2019]

> NCLT judgment dated 2019-12-23. Citation: TCN-2019-NCLT-00022. The case involves a Company Petition filed under Section 9 of the IBC by MTU Maintenance…

- **Court:** NCLT
- **Order date:** 23 Dec 2019
- **Citation:** TCN-2019-NCLT-00022
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lepl-projects-cpib-no-62-9-hdb-2019-dbfab78a

## Summary

### Background

The case involves a Company Petition filed under Section 9 of the IBC by MTU Maintenance Berlin-Brandenburg GmbH against LEPL Projects. The Adjudicating Authority initiated CIRP against the Respondent, and an IRP was appointed. The promoter of the respondent appealed the order before the NCLAT. During the appeal hearing, the parties reached a settlement.

## Facts

MTU Maintenance Berlin-Brandenburg GmbH filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code (IBC) against LEPL Projects. The Adjudicating Authority initiated Corporate Insolvency Resolution Process (CIRP) against LEPL Projects and appointed an Interim Resolution Professional (IRP). The promoter of LEPL Projects appealed the order before the National Company Law Appellate Tribunal (NCLAT). During the appeal hearing, the parties reached a settlement. The NCLAT, in view of the settlement, set aside the Adjudicating Authority's order and allowed the withdrawal of the application filed under Section 9. The Adjudicating Authority then dismissed the Transfer Petition (TCP) and released LEPL Projects from CIRP. LEPL Projects was directed to reimburse

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## Issues and analysis

### Issue 1: Whether the settlement reached between the parties during the appeal before the NCLAT warrants the …

**Ratio:** Rule 11 of NCLAT Rules, 2016 allows the NCLAT to exercise inherent powers to set aside

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**Reasoning:** The NCLAT, in exercise of its inherent powers under Rule 11 of NCLAT Rules, 2016,

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**Interpretation:** Rule 11 of NCLAT Rules, 2016 provides the NCLAT with the authority to exercise

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**Application:** The NCLAT applied Rule 11 of NCLAT Rules, 2016 to the facts of the case,

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## Parties

- **Judges:** JANAB МОНАММED…
- **Respondents:** LEPL Projects…; LEPL Pro…

## Timeline

- **2019-11-14 — CIRP Init…**: Adjudicating Authority…
- **2019-12-17 — NCLAT Or…**: NCLAT passed an order in Company…

## 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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