# In the matter of Avasarala Venkateshwra Rao Vs. Servomax India Pvt. Ltd. & Ors. CA(AT)(Insolvency)237-2019

> NCLAT judgment dated 2019-04-23. Citation: TCN-2019-NCLAT-00645. The Appellant challenged an order dated January 21, 2019, passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 23 Apr 2019
- **Citation:** TCN-2019-NCLAT-00645
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/avasarala-venkateshwra-rao-vs-servomax-india-pvt-ltd-ors-ca-f5844164

## Summary

### Background

The Appellant challenged an order dated January 21, 2019, passed by the Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench, Hyderabad, which pertained to certain orders on prohibition and observations. The Respondent's counsel argued that the interim direction passed by the Adjudicating Authority on January 21, 2019, had become infructuous due to the lapse of the moratorium period and the passing of a liquidation order.

## Facts

The Adjudicating Authority passed an order on prohibition and made certain observations. The Appellant challenged this order. The Respondent argued that the interim direction had become infructuous due to the lapse of the moratorium period and the passing of a liquidation order. The Appellant requested the court to expunge the remarks made against them by the Adjudicating Authority. The key fact is that the interim order had become infructuous, which influenced the court's decision regarding the observations made by the Adjudicating Authority.

## Issues and analysis

### Issue 1: Whether the observations made by the Adjudicating Authority should be taken into consideration when …

**Ratio:** Observations made by an Adjudicating Authority in an order should not be considered if

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**Reasoning:** The court reasoned that since the interim direction had become infructuous, the

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**Interpretation:** This legal issue involves the interpretation of the impact of observations made

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**Application:** The court applied this ratio to the specific facts by directing that the

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +2 more
- **Appellants:** Avasarala…
- **Respondents:** Servomax India…
- **Advocates:** Rajesh…; G.Madhusudh…; +3 more

## Timeline

- **2019-01-21 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Hyderabad Bench, passed an…
- **2019-04-23 — Appeal F…**: The Appellant challenged the order dated January 21, 2019, passed by the Adjudicating…

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