Case Note & Summary
The dispute arose between the suspended managing director of Oswal Overseas Ltd. and L H Sugar Factories Ltd. regarding financial obligations. The appellant filed an appeal before the National Company Law Appellate Tribunal, which was heard on 09.07.2026. During the proceedings, the parties jointly moved an application stating that they had amicably settled the dispute, with the terms of the settlement documented. The appellant requested the tribunal to dispose of the appeal based on this settlement. The tribunal noted that an interim order had previously been issued, directing the interim resolution professional not to take further steps until the next listing. However, it was necessary to move an application under Section 12A of the Insolvency and Bankruptcy Code, 2016, to the Adjudicating Authority. The tribunal found no objections from the respondents regarding the settlement and subsequently dismissed the appeal as withdrawn. It directed that if a withdrawal application was filed by the financial creditor, the interim resolution professional could proceed to constitute the Committee of Creditors but should not invite expressions of interest until the Section 12A application was resolved. The appellant confirmed that a demand draft of Rs. 2,80,00,000 had been handed over to the financial creditor, who acknowledged that the financial debt was fully discharged. The tribunal disposed of the application in accordance with these terms.
Headnote
A) Company Law - Amicable Settlement - Dismissal of Appeal - Insolvency and Bankruptcy Code, 2016, Section 12A - The parties reached an amicable settlement, and the appeal was dismissed as withdrawn with directions regarding the constitution of the Committee of Creditors and the handling of the Section 12A application. Held that the appeal was appropriately dismissed in light of the settlement (Paras 6-6).
Issue of Consideration
Whether the appeal can be dismissed as withdrawn following an amicable settlement between the parties.
Final Decision
The appeal was dismissed as withdrawn with directions for the interim resolution professional to constitute the Committee of Creditors after collating claims but not to invite expressions of interest until the Section 12A application was disposed of by the Adjudicating Authority.
Law Points
- Amicable settlement
- Withdrawal of appeal
- Interim resolution professional
- Constitution of Committee of Creditors
- Section 12A application
