# In the matter of Nitesh Estates Limited C.P. (IB) No. 35-BB-2018

> NCLT judgment dated 2019-07-31. Citation: TCN-2019-NCLT-02174. The case involves a petition filed by M/s. Pedersen Consultants India Private Limited under…

- **Court:** NCLT
- **Order date:** 31 Jul 2019
- **Citation:** TCN-2019-NCLT-02174
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/nitesh-estates-limited-cp-ib-no-35-bb-2018-a8564dee

## Summary

### Background

The case involves a petition filed by M/s. Pedersen Consultants India Private Limited under Section 9 of the IBC, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. Nitesh Estates Limited, the Corporate Debtor, due to a default of Rs. 20,21,800/-. The Adjudicating Authority initially rejected the company petition, leading the Petitioner to file an appeal before the NCLAT. The NCLAT allowed the appeal, setting aside the Adjudicating Authority's order and remitting the case back to the Adjudicating Authority to admit the application after issuing a notice to the Respondent, allowing them an opportunity to settle the matter.

## Facts

M/s. Pedersen Consultants India Private Limited, the Operational Creditor, filed C.P.(IB)No.35/BB/2018 under Section 9 of the IBC, 2016, seeking to initiate CIRP against M/s. Nitesh Estates Limited, the Corporate Debtor. The basis for the petition was a default of Rs. 20,21,800/- by the Corporate Debtor. The Adjudicating Authority initially rejected the petition on 2018-10-05. Aggrieved, the Petitioner appealed to the NCLAT, which allowed the appeal on 2019-07-24, setting aside the Adjudicating Authority's order and remitting the case. The NCLAT directed the Adjudicating Authority to admit the application under Section 9 after issuing notice to the Respondent, allowing an opportunity for settlement. Subsequently, the parties settled the matter, with the Respondent

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in initially rejecting the company petition filed …

**Ratio:** The NCLAT's decision to set aside the Adjudicating Authority's order indicates that the

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**Reasoning:** The NCLAT allowed the appeal because the Respondent was not given a sufficient

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**Interpretation:** The interpretation of Section 9 of the IBC and related regulations emphasizes

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**Application:** In this case, the initial rejection without providing an adequate opportunity

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## Parties

- **Judges:** Rajeswara Rao…; Ashok Kumar…
- **Appellants:** M/s.Pedersen…
- **Respondents:** M/s.Nitesh…

## Timeline

- **2018-10-05 — Initial Rejection of…**: The Adjudicating Authority rejected the…
- **2018-01-01 — Appeal to…**: The Petitioner filed an appeal before the Hon'ble NCLAT vide Company Appeal (AT)…

## 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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