Case Note & Summary
The dispute arose between Flint Group India Pvt. Ltd. and CJ Shah & Co. regarding a company petition filed under the Insolvency and Bankruptcy Code. The Learned Adjudicating Authority had previously disposed of the petition, establishing operational debt and default but deciding not to admit the Appellant into the Corporate Insolvency Resolution Process (CIRP) due to a Fixed Deposit created for the default amount. During the appeal process, both parties amicably resolved their disputes, agreeing that the money under the Fixed Deposit would remain with the Respondent as full and final settlement of all claims. They jointly submitted an application requesting the appeal be disposed of in accordance with their settlement. The Tribunal considered the submissions and set aside the findings on facts from the impugned order while keeping the legal issues open. Consequently, the appeal was dismissed as withdrawn, and pending applications were also disposed of.
Headnote
A) Company Law - Operational Debt - Admission into CIRP - Company Petition (IB) No. 35 of 2026 - The Learned Adjudicating Authority found operational debt and default established but did not admit the Appellant into CIRP due to a Fixed Deposit created for the default amount. The parties subsequently reached a settlement, leading to the dismissal of the appeal as withdrawn while keeping legal questions open. Held that the findings on facts were set aside (Paras 2-5).
Issue of Consideration
Whether the appeal should be allowed or dismissed in light of the settlement between the parties.
Final Decision
The appeal was dismissed as withdrawn, and the findings on facts from the impugned order were set aside while keeping the legal issues open.
Law Points
- Company Law
- Operational Debt
- Corporate Insolvency Resolution Process
- Settlement
- NCLT Rules
