# In the matter of LEPL Projects TCP (IB) No. 5-9-AMR-2019 in CP(IB) No. 62-9-HDB-2019

> NCLT judgment dated 2019-12-23. Citation: TCN-2019-NCLT-00024. 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-00024
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/lepl-projects-tcp-ib-no-5-9-amr-2019-in-cpib-no-62-9-hdb-2019-4a6399ab

## 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 IBC against LEPL Projects. The Adjudicating Authority initiated CIRP against LEPL Projects and appointed Smt. M. S. Mano Ranjani as the IRP. The promoter of LEPL Projects appealed the order before the NCLAT. During the appeal hearing, the parties reached a settlement. The NCLAT set aside the Adjudicating Authority's order and allowed the withdrawal of the application. The Adjudicating Authority then dismissed the TCP and CP, releasing LEPL Projects from CIRP. LEPL Projects was directed to reimburse the IRP's expenses and remuneration. The key fact is the settlement reached during the appeal, which led to the termination of the CIRP process.

## Issues and analysis

### Issue 1: Whether the NCLAT was justified in setting aside the Adjudicating Authority's order initiating CIRP …

**Ratio:** The NCLAT has the inherent power under Rule 11 of NCLAT Rules, 2016, to set aside orders

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**Reasoning:** The NCLAT considered the settlement reached between the parties during the appeal hearing

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**Interpretation:** Rule 11 of NCLAT Rules, 2016, provides the NCLAT with broad powers to ensure

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**Application:** In this case, the NCLAT applied Rule 11 of NCLAT Rules, 2016, to set aside the

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## Parties

- **Judges:** Janab Mohammed…
- **Respondents:** LEPL Projects…; LEPL Pro…

## Timeline

- **2019-11-14 — CIRP Init…**: The Adjudicating Authority…
- **2019-12-17 — NCLAT Or…**: NCLAT passed an order setting aside…

## 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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