# In the matter of Arshiya Ltd. vs. Punjab National Bank & Anr. Company Appeal (AT) (Insolvency) No.23 of 2023

> NCLAT judgment dated 2023-01-06. Citation: TCN-2023-NCLAT-00785. The case involves an appeal against an impugned order pronounced on 2022-12-23, which was…

- **Court:** NCLAT
- **Order date:** 6 Jan 2023
- **Citation:** TCN-2023-NCLAT-00785
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/arshiya-ltd-vs-punjab-national-bank-anr-company-appeal-a8e51f3b

## Summary

### Background

The case involves an appeal against an impugned order pronounced on 2022-12-23, which was reserved on 2022-11-11. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor on 2022-11-14 based on an application under Section 7 filed by the State Bank of India. This fact was allegedly not brought to the Court's notice. Punjab National Bank sent an email to the Corporate Debtor on 2022-12-23, informing them that a One Time Settlement of Rs.86 Crores is under process and has been placed before the competent authority for sanction. The appellant argues that a second CIRP cannot be initiated since CIRP has already been initiated against them.

## Facts

The State Bank of India filed an application under Section 7, leading to the initiation of CIRP against the Corporate Debtor on 2022-11-14. The Appellant contends that the initiation of CIRP was based on facts that were not fully disclosed to the court. Punjab National Bank sent an email to the Corporate Debtor on 2022-12-23, informing them about a One Time Settlement (OTS) of Rs.86 Crores, which is currently under process and awaiting sanction. The Appellant argues that since CIRP has already been initiated against them, a second CIRP cannot be initiated. The impugned order was pronounced on 2022-12-23, having been reserved on 2022-11-11.

## Issues and analysis

### Issue 1: Whether the impugned order dated 2022-12-23 …

**Ratio:** The court has the power to grant a stay on an order if it deems necessary to prevent

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**Reasoning:** The court decided to stay the impugned order dated 2022-12-23, indicating that there are

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**Interpretation:** The stay order reflects the court's cautious approach, acknowledging the

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**Application:** The court applied its discretion to stay the order, balancing the interests of

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Arshiya…
- **Respondents:** Punjab National…

## Timeline

- **2022-11-11 — Order Res…**: The impugned order was…
- **2022-11-14 — CIRP Init…**: CIRP was initiated against the Corporate Debtor based on an application under Section 7…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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