# In the matter of Insolvency and Bankruptcy Board of India Vs State Bank of India & Ors LPA 566-2018

> HC judgment dated 2018-10-05. Citation: TCN-2018-HC-00004. This is an appeal case LPA 566/2018 before the High Court of Delhi at New Delhi concerning…

- **Court:** HC
- **Order date:** 5 Oct 2018
- **Citation:** TCN-2018-HC-00004
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/insolvency-and-bankruptcy-board-of-india-vs-state-bank-of-india-ors-lpa-566-2018-ec354a38

## Summary

### Background

This is an appeal case LPA 566/2018 before the High Court of Delhi at New Delhi concerning Insolvency & Bankruptcy Board of India. The appeal challenges an order passed by the National Company Law Tribunal (NCLT), Principal Bench, New Delhi. The specific issue pertains to Regulation 36A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

## Facts

The case involves an appeal (LPA 566/2018) filed before the High Court of Delhi at New Delhi. The appellant is challenging an order issued by the National Company Law Tribunal (NCLT), Principal Bench, New Delhi, dated September 5, 2018. The NCLT order declared Regulation 36A of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 as ultra vires. The appellant seeks a stay on the NCLT order. The High Court has issued a notice to the respondents and granted a stay on the NCLT order pending further hearing. The State Bank of India & ORS are the respondents in the appeal.

## Issues and analysis

### Issue 1: Whether the High Court should grant a stay on the order passed by the National Company Law Tribunal …

**Ratio:** The court has the power to grant a stay on orders passed by lower tribunals or courts to

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**Reasoning:** The court reasoned that a stay was necessary to prevent the NCLT's declaration of

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**Interpretation:** The grant of a stay indicates that the High Court found sufficient grounds to

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**Application:** The court applied the principle of granting a stay to preserve the status quo

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## Parties

- **Judges:** THE CHIEF J…; V. KAMESW…
- **Appellants:** Mr.P.S.Na…
- **Respondents:** State Bank of…

## Timeline

- **2018-09-05 — NCLT Ord…**: The National Company Law Tribunal, Principal Bench, New Delhi, passed an order declaring…
- **2018-10-05 — High Court…**: The High Court of Delhi issued a notice to the respondents and granted a stay on the NCLT…

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