# In the matter of SBZ AD Agency Pvt. Ltd. (IB)-620-(PB)-2017

> NCLT judgment dated 2018-10-08. Citation: TCN-2018-NCLT-00641. The case involves Reliance Commercial Finance Ltd. as the petitioner and SBZ AD Energy Private…

- **Court:** NCLT
- **Order date:** 8 Oct 2018
- **Citation:** TCN-2018-NCLT-00641
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sbz-ad-agency-pvt-ltd-ib-620-pb-2017-120da2b5

## Summary

### Background

The case involves Reliance Commercial Finance Ltd. as the petitioner and SBZ AD Energy Private Limited as the respondent. The matter pertains to Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The order was delivered on October 8, 2018. The Appellate Tribunal had previously noted a settlement between the parties, with the total amount due to creditors paid. The parties were instructed to approach the Committee of Creditors (CoC) under Section 12A of the IBC.

## Facts

Reliance Commercial Finance Ltd. initiated proceedings against SBZ AD Energy Private Limited under Section 7 of the IBC, 2016. During the proceedings, a settlement was reached between the parties, and the total amount due to the creditors was paid. The Appellate Tribunal acknowledged this settlement in its order dated 03.10.2018 and directed the parties to approach the Committee of Creditors (CoC) under Section 12A of the IBC. The Resolution Professional's role was clarified to be limited to fixing the date of the CoC meeting. The Appellant was permitted to file a supplementary affidavit regarding any developments. The NCLT then closed the proceedings, subject to the Appellate Tribunal's order.

## Issues and analysis

### Issue 1: Whether the proceedings before the Adjudicating Authority-NCLT should be closed given the …

**Ratio:** When a settlement is reached between the parties and the total amount due to the

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**Reasoning:** The court reasoned that since the Appellate Tribunal had already acknowledged the

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**Interpretation:** This implies that once a settlement is reached and acknowledged by a higher

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**Application:** In this case, the settlement and payment to creditors, coupled with the

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## Parties

- **Judges:** M. M. K…; S. K. MOH…
- **Appellants:** Reliance Commercia…
- **Respondents:** SBZ AD Energy…

## Timeline

- **2018-10-03 — Appellate Tribu…**: Hon'ble Appellate Tribunal passed an order noting the settlement between the parties and…
- **2018-10-08 — NCLT Ord…**: NCLT closed all proceedings subject to the order passed by the Hon'ble Appellate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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