# in the matter of Lokhandwala Kataria Construction Pvt. Ltd. Vs Nisus Finance and Investment Manager, LLP Civil Appeal No. 9279 of 2017

> SC judgment dated 2017-07-24. Citation: TCN-2017-SC-00020. The appeal concerns whether the National Company Law Appellate Tribunal (NCLAT) could utilize its…

- **Court:** SC
- **Order date:** 24 Jul 2017
- **Citation:** TCN-2017-SC-00020
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/lokhandwala-kataria-construction-pvt-ltd-vs-nisus-finance-and-investment-manager-3fd45618

## Summary

### Background

The appeal concerns whether the National Company Law Appellate Tribunal (NCLAT) could utilize its inherent power under Rule 11 of the National Company Law Appellate Tribunal Rules, 2016, to allow a compromise between parties after the matter's admission, considering Rule 8 of the I&B (Application to Adjudicating Authority) Rules, 2016. The NCLAT had previously held that its inherent power could not be so utilized.

## Facts

Lokhandwala Kataria Construction Private Limited filed an appeal against Nisus Finance and Investment Managers LLP. The central issue was whether the National Company Law Appellate Tribunal (NCLAT) could use its inherent powers to allow a compromise between the parties after the admission of the matter, considering Rule 8 of the I&B (Application to Adjudicating Authority) Rules, 2016. The NCLAT had ruled that it could not. The Supreme Court heard the appeal and noted that all parties were present. Consent Terms were agreed upon by the parties on 28.06.2017 and 12.07.2017. The appellant undertook to abide by these Consent Terms and pay the sums due. The Supreme Court then disposed of the appeal, effectively settling the matter based on the Consent Terms.

## Issues and analysis

### Issue 1: Whether the National Company Law Appellate Tribunal could utilize the inherent power recognized by …

**Ratio:** The Supreme Court has the power under Article 142 of the Constitution of India to pass

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**Reasoning:** The Court initially agreed with the NCLAT's view that inherent power could not be

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**Interpretation:** Article 142 of the Constitution grants the Supreme Court broad powers to ensure

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**Application:** The Court applied Article 142 to take the Consent Terms on record and dispose

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## Parties

- **Judges:** ROHINTON FALI…; SANJAY KISH…
- **Appellants:** Lokhandwala…
- **Respondents:** NISUS FINANCE AND…
- **Other parties:** Affir…

## Timeline

- **2017-06-28 — Consent…**: Consent Terms entered…
- **2017-07-12 — Consent…**: Consent Terms entered…

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