Authority: National Company Law Appellate Tribunal, Chennai (Justice Sharad Kumar Sharma - Member (Judicial) and Jatindranath Swain - Member (Technical))
Order Date: 09.06.2026
Case Overview
The appeal was filed by Bayyavarapu Padmaja, Suspended Director of Lanarsy Infra Ltd. (Corporate Debtor), challenging the impugned order dated 19.05.2026 passed by the Adjudicating Authority in CP(IB) No. 251/BB/2025. The Adjudicating Authority had admitted the Corporate Debtor into Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code, 2016. During the appellate proceedings, the Appellant's counsel submitted a memo claiming that a full and final settlement had been entered into between the parties. However, Respondents 2 & 3 disputed the actual remittance of amounts under the settlement terms.
The Tribunal noted that any settlement must be processed through consideration by the Committee of Creditors (CoC) in accordance with Section 12A(2) of the I&B Code. All contentions regarding payment of amounts and other dues under the settlement would need to be considered by the CoC before giving finality to the settlement under Section 12A provisions.
Final Outcome
The Tribunal directed the constituted CoC to evaluate the settlement proposal and respond back to the Tribunal within three weeks from 09.06.2026. Due to the pending settlement consideration, the CIRP proceedings were directed to be deferred. The appeal was listed for next hearing on 29.06.2026.
Topics: Insolvency Proceedings, Settlement Agreement, Committee of Creditors