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

> NCLT judgment dated 2018-10-08. Citation: TCN-2018-NCLT-00637. 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-00637
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sbz-ad-agency-pvt-ltd-ib-620-pb-2017-a3fc078d

## Summary

### Background

The case involves Reliance Commercial Finance Ltd. as the petitioner and SBZ AD Energy Private Limited as the respondent. The matter was under Section 7 of the IBC, 2016. The Hon'ble Appellate Tribunal had previously passed an order on 03.10.2018 indicating a settlement between the parties, with the total amount due to creditors paid. The parties were directed to approach the Committee of Creditors in accordance with Section 12A of the IBC, 2016.

## 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 Hon'ble Appellate Tribunal acknowledged the settlement in its order dated 03.10.2018 and directed the parties to approach the Committee of Creditors in terms of Section 12A of the IBC, 2016. The Resolution Professional's role was clarified to be limited to fixing the date of the Committee of Creditors meeting. The appellant was granted the opportunity to file a supplementary affidavit regarding any developments. The NCLT then closed the proceedings, subject to the order of the Appellate Tribunal, effectively disposing of

…

## Issues and analysis

### Issue 1: Whether the settlement between the parties and the payment of the total amount due to the creditors …

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

…

**Reasoning:** The court reasoned that since a settlement had been reached and the creditors had been

…

**Interpretation:** This implies that the primary objective of the IBC, which is resolution of

…

**Application:** In this case, the settlement and payment of dues led to the closure of the

…

## 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 indicating settlement between the parties and…
- **2018-10-08 — NCLT Ord…**: NCLT closed the proceedings subject to the order…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

---

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/nclt-chandigarh/sbz-ad-agency-pvt-ltd-ib-620-pb-2017-a3fc078d