# In the matter of Avasarala  Technologies Vs The Registrar, NCLT, Bangalore

> HC judgment dated 2023-08-14. Citation: TCN-2023-HC-00044. Avasarala Technologies filed a writ petition in the High Court of Karnataka against the Registrar…

- **Court:** HC
- **Order date:** 14 Aug 2023
- **Citation:** TCN-2023-HC-00044
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/avasarala-technologies-vs-the-registrar-nclt-bangalore-2553198f

## Summary

### Background

Avasarala Technologies filed a writ petition in the High Court of Karnataka against the Registrar of the National Company Law Tribunal (NCLT), Bangalore Bench, Thyssenkrupp Automation Engineering GMBH, and Mr. Ravi Sankar Devarakonda, the Interim Resolution Professional. The petition challenges the maintainability of proceedings before the NCLT, citing Section 10A of the Insolvency and Bankruptcy Code (IBC).

## Facts

Avasarala Technologies filed a writ petition challenging the maintainability of proceedings before the NCLT. The Registrar of the NCLT, Thyssenkrupp Automation Engineering GMBH, and the Interim Resolution Professional, Mr. Ravi Sankar Devarakonda, are the respondents. The petitioner relies on Section 10A of the IBC, which suspends the initiation of corporate insolvency resolution processes for defaults arising on or after March 25, 2020. The respondents argue that the writ petition is maintainable based on the Innoventive Industries Limited vs. ICICI Bank case. The demand notice is dated 19.11.2020. The court notes that the Innoventive Industries case does not reference Section 10A of the IBC. The court also notes that Section 10A is a transitional provision to address

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## Issues and analysis

### Issue 1: Whether the proceedings before the NCLT are maintainable in light of Section 10A of the Insolvency …

**Ratio:** Section 10A of the IBC suspends the initiation of corporate insolvency resolution

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**Reasoning:** The court finds prima facie force in the petitioner's submission that Section 10A of the

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**Interpretation:** Section 10A is interpreted as a temporary suspension of insolvency proceedings

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**Application:** If the default in this case arose on or after March 25, 2020, Section 10A would

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## Parties

- **Judges:** G.NARE…; VIJAYAKUMAR.A.PATI…
- **Appellants:** Avasarala…
- **Respondents:** THE REGI…
- **Other parties:** Kohi…

## Timeline

- **2020-03-25 — Section 10A…**: Section 10A of the IBC suspends the initiation of corporate insolvency resolution…
- **2020-11-19 — Demand Noti…**: The demand notice was…

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