# In the matter of Innovative Industries Limited vs Union of India and Ors. Writ Petition (LDG) No. 143-2017

> HC judgment dated 2017-02-23. Citation: TCN-2017-HC-00013. The writ petition challenges the vires of an Act. The petitioner sought ad-interim relief of stay,…

- **Court:** HC
- **Order date:** 23 Feb 2017
- **Citation:** TCN-2017-HC-00013
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/innovative-industries-limited-vs-union-of-india-and-ors-writ-petition-7928dcf0

## Summary

### Background

The writ petition challenges the vires of an Act. The petitioner sought ad-interim relief of stay, which was rejected. The main order is now subject to challenge before the statutory appellate authority, making the challenge to the vires academic. A ground raised before the appellate authority is the violation of principles of natural justice.

## Facts

Innovative Industries Limited filed a writ petition challenging the vires of an unspecified Act. The petitioner sought an ad-interim stay, which was rejected. The main order related to the appointment of the IRP (Insolvency Resolution Professional). The main order has been challenged before the statutory appellate authority. The petitioner also contends that they were not given a fair opportunity to be heard, which is a violation of the principles of natural justice. The court disposed of the petition, allowing the petitioner to raise all contentions before the appellate authority.

## Issues and analysis

### Issue 1: Whether the challenge to the vires of the Act becomes academic when the main order is under …

**Ratio:** When the main order is already under challenge before a statutory appellate authority, a

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**Reasoning:** The court reasoned that since the main order was already being challenged before the

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**Interpretation:** This principle suggests a preference for resolving disputes through established

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**Application:** In this case, because the main order concerning the appointment of the IRP was

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## Parties

- **Judges:** DR.MANJULA…; G. S. KUL…
- **Appellants:** Innovative…
- **Respondents:** Union of…
- **Advocates:** Ravi K…; Chetan Ka…; +10 more

## Timeline

- **2017-02-21 — Affidavit…**: Petitioner placed on record an additional…
- **2017-01-30 — Challenge to Vires and…**: Petitioner challenged the vires of the Act…

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