K.N. Rajakumar vs V. Nagarajan & Ors

Bench: 3 — B.R. Gavai

In Brief

M/s Aruna Hotels Ltd., a corporate debtor incorporated in 1960, faced insolvency proceedings initiated by a retired employee D. Ramjee seeking Rs 2.6 crore in outstanding salary dues. The NCLT admitted the corporate insolvency resolution proceedings, but NCLAT set aside this order in 2017. Subsequently, when management settled creditor claims and moved to withdraw the proceedings with 90% Committee of Creditors approval, the Supreme Court held the matter had attained finality since D. Ramjee had not challenged NCLAT's 2017 order. The Court dismissed both appeals, noting that revival of the corporate debtor is the IBC's principal aim and that withdrawal was valid."

The lawyer headnote and full judgment text are available to registered users.

Insolvency and Bankruptcy Corporate Insolvency Resolution Process Committee of Creditors Withdrawal of CIRP Employee Claims Revival of Corporate Debtor

Read the full judgment & headnote. It's free.

Register to read the complete Supreme Court judgment text and the headnote, and to search 1 lakh+ Supreme Court judgments by meaning. It is a free service.