# In the matter of Tubelight Communication Limited

> NCLT judgment dated 2023-04-17. Citation: TCN-2023-NCLT-03790. The case involves an appeal against the order of the Adjudicating Authority, which admitted a…

- **Court:** NCLT
- **Order date:** 17 Apr 2023
- **Citation:** TCN-2023-NCLT-03790
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tubelight-communication-limited-19a62259

## Summary

### Background

The case involves an appeal against the order of the Adjudicating Authority, which admitted a Section 9 application filed by the Operational Creditor, initiating the CIRP process against Bsmart Tech Private Limited. The appellant, Dheerendra Kumar Singh, challenged the order dated 23.03.2023 before the NCLAT. Subsequently, a settlement was reached between the parties, and an application (I.A. No. 1453 of 2023) was filed to bring the settlement on record. The initial application to initiate CIRP was filed under Section 9 of the IBC.

## Facts

Bsmart Tech Private Limited faced a Company Petition (No. 1104 of 2020) under Section 9 of the IBC, initiated by an Operational Creditor, Tubelight Communication Limited. The Adjudicating Authority admitted the petition on 23.03.2023, commencing the CIRP process. Dheerendra Kumar Singh, a member of the Suspended Board of Directors, challenged this order before the NCLAT. During the appeal process, a settlement was reached between Bsmart Tech Private Limited and Tubelight Communication Limited. All payments as per the settlement were made to the Operational Creditor. The fees and expenses of the IRP were also paid. Consequently, an application (I.A. No. 1453 of 2023) was filed to record the settlement. The NCLAT then set aside the Adjudicating Authority's order and

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## Issues and analysis

### Issue 1: Whether the settlement between the Operational Creditor and the Corporate Debtor warrants the …

**Ratio:** The principle is that if a settlement is reached between the parties after the initiation

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**Reasoning:** The NCLAT reasoned that since the Operational Creditor had received the full payment as

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**Interpretation:** This interprets that the primary objective of the IBC is resolution and

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**Application:** In this case, the settlement was reached, and payments were made. Therefore,

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +2 more
- **Appellants:** Dheerendra Kumar…
- **Respondents:** Bsmart Tech…; Bsmart Tech Pvt.…

## Timeline

- **2023-03-23 — Admission of Section 9…**: The Adjudicating Authority admitted the Section 9 application filed by the Operational…
- **2023-03-23 — Order Chal…**: The order dated 23.03.2023 was challenged by…

## 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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