Lokhandwala Kataria Construction Pvt. Ltd. Vs. Nisus Finance and Investment Manager LLP (Civil Appeal No. 9279 of 2017) - Synopsis
Team SoOLEGAL 19 Feb 2021
In this case, Lokhandwala Kataria Construction Pvt. Ltd. Vs. Nisus Finance and Investment Manager LLP (Civil Appeal No. 9279 of 2017), the appellant/Corporate Debtor lodged an appeal against the order passed by the Adjudicating Authority (NCLT, Mumbai Bench) in which the Bench had approved the application pursuant to section 7 of the Insolvency and Bankruptcy Code, 2016. The parties had settled the conflict and half of the sum had already been compensated. The National Company Law Appellate Tribunal had ruled that there should be no basis for interfering with the challenged order in the absence of any other infirmity. In addition, NCLAT held that Rule 11 of the National Company Law Appellate Tribunal Rules, 2016 was not adopted for the purposes of the Code and that only Rules 20 and 26 were adopted in the absence of any unique inherent power and, where there is no merit, the issue of the exercise of inherent power does not arise. Being aggrieved, an appeal was made in front of the Supreme Court.
According to the Supreme Court, in the light of Rule 8 of the Insolvency and Bankruptcy (Application to the Adjudicating Authority) Rules 2016, the National Company Law Appellate Tribunal does not use the inherent power acknowledged by Rule 11 of the National Company Law Appellate Tribunal Rules, 2016 to make a settlement before it by the parties after the admission of the case. Thus the Court had disposed of the appeal. 

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