# In the matter of Tubelight Communication Limited

> NCLT judgment dated 2023-04-17. Citation: TCN-2023-NCLT-03794. The case involves an appeal against the order of the Adjudicating Authority (NCLT) which…

- **Court:** NCLT
- **Order date:** 17 Apr 2023
- **Citation:** TCN-2023-NCLT-03794
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tubelight-communication-limited-69e5fd36

## Summary

### Background

The case involves an appeal against the order of the Adjudicating Authority (NCLT) which admitted a Section 9 application filed by the Operational Creditor, initiating the CIRP process against Bsmart Tech Private Limited. The initial order was dated 23.03.2023. An IA was filed to withdraw the Company Petition No. 1104 of 2020. The order dated 23.03.2023 was challenged by Mr. Dheerendra Kumar Singh, a member of the suspended board of directors, before the NCLAT.

## Facts

Bsmart Tech Private Limited faced a Company Petition No. 1104 of 2020 under Section 9 of the IBC, filed by an Operational Creditor. The Adjudicating Authority admitted the petition on 23.03.2023, initiating 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 the parties on 05.04.2023. The Operational Creditor confirmed that the payment under the settlement had been made, and the IRP's fees and expenses were also paid. The NCLAT took the settlement on record and set aside the initial order, disposing of the appeal. Subsequently, the NCLT dismissed the Company Petition No. 1104 of 2020 as withdrawn, effectively terminating the CIRP

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## Issues and analysis

### Issue 1: Whether the NCLAT was justified in setting aside the order of the Adjudicating Authority admitting …

**Ratio:** The NCLAT has the power to set aside orders of the Adjudicating Authority if there is a

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**Reasoning:** The NCLAT reasoned that a settlement had been reached between the parties, and the

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**Interpretation:** This demonstrates the NCLAT's willingness to promote settlements and resolve

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**Application:** In this case, the settlement between the parties provided a valid reason for

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## Parties

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

## Timeline

- **2020-01-01 — Company Petiti…**: Company Petition No. 1104 of 2020…
- **2023-03-23 — Admission of Section 9…**: Adjudicating Authority admitted the…

## 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)

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