# In the matter of Madhukar Tulsi Vs. Ajay Kumar Gupta and Ors. Civil Appeal No. 21008-2017

> SC judgment dated 2017-12-15. Citation: TCN-2017-SC-00003. The case involves an appeal against an order dated 30.11.2017 by the National Company Law Appellate…

- **Court:** SC
- **Order date:** 15 Dec 2017
- **Citation:** TCN-2017-SC-00003
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/madhukar-tulsi-vs-ajay-kumar-gupta-and-ors-civil-appeal-no-21008-2017-cf802a26

## Summary

### Background

The case involves an appeal against an order dated 30.11.2017 by the National Company Law Appellate Tribunal (NCLAT). The NCLAT held that its inherent powers could not be used to record a compromise between parties after the admission of a petition under the Insolvency and Bankruptcy Code (IBC).

## Facts

The National Company Law Appellate Tribunal (NCLAT) passed an order on 30.11.2017, stating that it could not use its inherent powers to record a compromise between the parties after the admission of a petition under the Insolvency and Bankruptcy Code (IBC). The parties had reached a compromise, and a written consent dated 18.11.2017 was submitted, indicating that payments had been made. The Supreme Court, to provide a final resolution, invoked its powers under Article 142 of the Constitution of India. The Supreme Court took the written consent on record, acknowledging that payments had been made, and disposed of the appeal.

## Issues and analysis

### Issue 1: Whether the National Company Law Appellate Tribunal (NCLAT) can utilize its inherent powers to …

**Ratio:** The NCLAT believed it lacked the inherent power to record a compromise after the

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**Reasoning:** The NCLAT's reasoning was based on its interpretation of the scope of its inherent powers

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**Interpretation:** The NCLAT interpreted the IBC as limiting its ability to facilitate compromises

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**Application:** The NCLAT's interpretation led it to conclude that it could not record the

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## Parties

- **Judges:** ROHINTON FALI…; NAVIN S…
- **Appellants:** MADHUKAR…
- **Respondents:** Ajay Kumar…
- **Other parties:** Over Tu…

## Timeline

- **2017-11-30 — Impugned Order…**: The National Company Law Appellate Tribunal (NCLAT) issued an order stating that it could…
- **2017-11-18 — Written C…**: The parties submitted a written consent, indicating that payments had been made as part…

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