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of <h1>Supreme Court overturns NCLT decision on Insolvency & Bankruptcy Code petition, emphasizes 'Financial Creditors' criteria</h1> <h3>PARMANAND KEWALRAMANI Versus SANJAY KEWALRAMANI & ORS.</h3> The Supreme Court allowed the appeal by Respondent No.1, overturning the NCLT's decision regarding the petition filed under the Insolvency and Bankruptcy ... Corporate Insolvency Resolution Process - Held that:- Dispute between the parties could be settled amicably, to which the parties also expressed their willingness for settling the dispute with mutual understanding. Accordingly, the parties have arrived at an amicable settlement and an application has been filed in the instant appeal for taking on record their Settlement Agreement dated 18.12.2018. We have given our consideration to the Settlement Agreement dated 18.12.2018 arrived at between the parties herein. While allowing the interlocutory application, we direct that the said Settlement Agreement shall form part of this order. In consequence thereof, nothing remains for further adjudication in the Civil Appeal and therefore, the appeal as well as other pending applications, if any, shall also stand disposed of. Issues:1. Validity of the impugned judgment by NCLAT setting aside the NCLT order.2. Maintainability of the petition under the Insolvency and Bankruptcy Code.3. Determination of financial debt and classification of creditors.Analysis:1. The Supreme Court dealt with an appeal arising from the NCLAT's judgment setting aside the NCLT's order in a matter related to Corporate Insolvency Resolution Process. The NCLAT allowed the appeal by Respondent No.1, overturning the NCLT's decision regarding the petition filed under the Insolvency and Bankruptcy Code. The Supreme Court reviewed the impugned judgment and subsequent proceedings.2. The case involved loans provided to a company (Corporate Debtor) by the Appellant and others, leading to a petition under the Insolvency and Bankruptcy Code. The NCLT initially admitted the petition concerning the Appellant and another party but rejected it for a third party due to a contractual bar. The NCLAT later found the petition for the Appellant and the third party not maintainable, questioning the proof of loans given to the Corporate Debtor, and the classification as 'Financial Creditors.'3. The Supreme Court considered the nature of the debt and the criteria for identifying 'Financial Creditors' under the Insolvency and Bankruptcy Code. It examined the interest paid by the Corporate Debtor and its relevance to determining financial debt. The Court reviewed the arguments presented by both parties and assessed the Settlement Agreement reached between them, leading to the disposal of the appeal and related applications. The Settlement Agreement was made part of the Court's order, concluding the matter without further adjudication.This detailed analysis covers the key issues addressed by the Supreme Court in the judgment, providing a comprehensive overview of the legal proceedings and outcomes in the case.
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