# In the matter of Uttara Foods and Feeds Private Limited Vs. Mona Pharmachem Civil Appeal No. 18520-2017

> SC judgment dated 2017-11-13. Citation: TCN-2017-SC-00008. The case arises out of a Special Leave Petition (Civil) No. 26824 of 2017. An earlier order dated…

- **Court:** SC
- **Order date:** 13 Nov 2017
- **Citation:** TCN-2017-SC-00008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/uttara-foods-and-feeds-private-limited-vs-mona-pharmachem-civil-appeal-no-18520-a9218792

## Summary

### Background

The case arises out of a Special Leave Petition (Civil) No. 26824 of 2017. An earlier order dated 24.07.2017 observed that the National Company Law Appellate Tribunal (NCLAT) could not avail of inherent powers recognized by Rule 11 of the National Law Appellate Tribunal Rules, 2016, to allow a compromise after the admission of an insolvency petition. The Supreme Court considered that such orders should come to the Supreme Court, as only the Supreme Court may utilize its powers under Article 142 of the Constitution of India.

## Facts

Uttara Foods and Feeds Private Limited filed an appeal against Mona Pharmachem. The case originated from an order of the National Company Law Tribunal (Mumbai Bench) in CP No. 1081/2017, dated 19-07-2017. The counsels for both the appellant and respondent agreed that the matter had been settled amicably. The Supreme Court took this settlement on record and set aside the NCLAT order. The case involved the question of whether NCLAT could use its inherent powers to allow a compromise after the admission of an insolvency petition, as per Rule 11 of the National Law Appellate Tribunal Rules, 2016. The Supreme Court observed that only the Supreme Court may utilize its powers under Article 142 of the Constitution of India.

## Issues and analysis

### Issue 1: Whether the National Company Law Appellate Tribunal (NCLAT) could avail of the inherent powers …

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

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**Reasoning:** The Court observed that in an earlier order, it had noted that the NCLAT could not avail

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**Interpretation:** This issue concerns the interpretation of the powers of the NCLAT versus the

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**Application:** The Court took on record the settlement between the parties and set aside the

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## Parties

- **Judges:** ROHINTON FALI…; SANJAY KISH…
- **Appellants:** Uttara Foods And…
- **Respondents:** MONA PHAR…
- **Other parties:** Over Tu…

## Timeline

- **2017-07-19 — Impugned…**: Impugned final judgment and order passed by the National Company Law Tribunal, Mumbai…
- **2017-07-24 — Earlier…**: Bench observed that NCLAT could not avail of inherent powers to allow a compromise after…

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