# In the matter of Uphealth Holdings, INC vs. Dr. Syed Sabahat Azim & Ors.

> HC judgment dated 2024-05-22. Citation: TCN-2024-HC-00087. This case involves a revisional application against an order dated January 17, 2024, passed by the…

- **Court:** HC
- **Order date:** 22 May 2024
- **Citation:** TCN-2024-HC-00087
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/uphealth-holdings-inc-vs-dr-syed-sabahat-azim-ors-edaaa205

## Summary

### Background

This case involves a revisional application against an order dated January 17, 2024, passed by the Learned Commercial Judge at Rajarhat, North 24 Parganas, in Title Suit No. 17 of 2023, which is an anti-arbitration suit. During the pendency of the suit, the petitioner/defendant No. 1 filed an application under Section 151 of the Code of Civil Procedure, 1908, seeking a stay of further proceedings, citing a moratorium in U.S. Bankruptcy proceedings. Alternatively, the petitioner sought adjournment of the suit for 180 days. The learned Judge rejected the application, holding that the U.S. Bankruptcy Court's moratorium order was not applicable in India because the U.S.A. had not been declared a reciprocating territory under Section 44A of the Code of Civil Procedure. The

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## Facts

Uphealth Holdings, INC. is involved in a Title Suit No. 17 of 2023, which is an anti-arbitration suit. During the suit's pendency, Uphealth Holdings, INC. (petitioner/defendant No. 1) applied under Section 151 of the Code of Civil Procedure, 1908, to stay proceedings, citing a moratorium in U.S. Bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code. The petitioner sought an alternative adjournment of 180 days. The Bankruptcy Court of the District of Delaware U.S. issued an order dated October 24, 2023, which the petitioner claimed operated as a worldwide temporary stay under Section 362 of Chapter 11. The Learned Commercial Judge rejected the stay application, stating the U.S. moratorium was inapplicable in India as the U.S.A. wasn't a reciprocating

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## Issues and analysis

### Issue 1: Whether the moratorium order issued by the U.S. Bankruptcy Court is applicable and enforceable in …

**Ratio:** The principle of reciprocity, as enshrined in Section 44A of the Code of Civil Procedure,

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**Reasoning:** The court reasoned that the learned Judge correctly applied Section 44A and Sections 13

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**Interpretation:** Section 44A of the Code of Civil Procedure outlines the conditions under which

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**Application:** In this case, because the U.S.A. has not been declared a reciprocating

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## Parties

- **Judges:** Shampa S…
- **Appellants:** Uphealth Holdings,…
- **Respondents:** Syed Sabaha…

## Timeline

- **2024-01-17 — Order by Commercial…**: The Learned Commercial Judge at Rajarhat, North 24 Parganas, passed an order in Title…
- **2024-01-31 — Hearing…**: One of the hearing dates for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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