# In the matter of Asset Reconstruction Company (India) Limited Vs. V Hotels Limited CA(AT)(Insolvency) 417-2019

> NCLAT judgment dated 2019-04-19. Citation: TCN-2019-NCLAT-00665. The Appellant, Asset Reconstruction Company (India) Limited, filed an application under…

- **Court:** NCLAT
- **Order date:** 19 Apr 2019
- **Citation:** TCN-2019-NCLAT-00665
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/asset-reconstruction-company-india-limited-vs-v-hotels-limited-ca-147f43ff

## Summary

### Background

The Appellant, Asset Reconstruction Company (India) Limited, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, on April 3, 2018. As of April 18, 2019, the application had not been heard, and no order had been passed, despite one year having elapsed since the filing.

## Facts

Asset Reconstruction Company (India) Limited filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, on April 3, 2018. As of April 18, 2019, the application had not been heard, and no order had been passed. The Appellant raised a grievance regarding the delay in hearing the application. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, was directed to pass an appropriate order on the application after hearing the parties, preferably by May 1, 2019, and no later than May 17, 2019. The court clarified that it had not expressed any opinion on the merit of the application under Section 7, which is to be decided by the Adjudicating Authority uninfluenced by the order. The order does not prevent the parties from settling the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority should be directed to pass an order on the application under …

**Ratio:** The Adjudicating Authority has a duty to adjudicate applications filed under Section 7 of

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**Reasoning:** The court reasoned that the application had been pending for over a year without any

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**Interpretation:** Section 7 of the Insolvency and Bankruptcy Code allows financial creditors to

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**Application:** The court applied the principle of timely adjudication by directing the

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## Parties

- **Judges:** S.J. Mukhop…
- **Appellants:** Asset Reconstructi…
- **Respondents:** V Hotels L…
- **Advocates:** Harin R…; Yugank…; +1 more

## Timeline

- **2018-04-03 — Application…**: Asset Reconstruction Company (India) Limited filed an application under Section 7 of the…
- **2019-04-18 — Court Or…**: The court directed the Adjudicating Authority to pass an order on the application under…

## 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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