# In the matter of Bhavit Sheth vs. Madan Bajrang Lal Vaishnawa, IRP of Sporta Technologies Pvt. Ltd. & Anr.

> NCLAT judgment dated 2024-04-03. Citation: TCN-2024-NCLAT-00546. The case is an appeal before the National Company Law Appellate Tribunal (NCLAT) concerning…

- **Court:** NCLAT
- **Order date:** 3 Apr 2024
- **Citation:** TCN-2024-NCLAT-00546
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bhavit-sheth-vs-madan-bajrang-lal-vaishnawa-irp-of-sporta-technologies-pvt-ltd-a-64a25b97

## Summary

### Background

The case is an appeal before the National Company Law Appellate Tribunal (NCLAT) concerning an insolvency matter. The appeal is against an order that was previously stayed, directing the IRP (Insolvency Resolution Professional) not to take further steps in the CIRP (Corporate Insolvency Resolution Process).

## Facts

Bhavit Sheth filed an appeal against Madan Bajrang Lal Vaishnawa, the IRP of Sporta Technologies Pvt. Ltd. & Anr. The initial order, dated 14.02.2024, was stayed, which directed the IRP not to take further steps in the CIRP. The court clarified that the IRP, while restricted from taking steps in the CIRP, must ensure the company continues as a going concern. The case is listed for further hearing on 05.04.2024.

## Issues and analysis

### Issue 1: Whether the IRP can take any steps …

**Ratio:** A stay order generally prevents the party subject to it from taking further action

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**Reasoning:** The court explicitly stated that the impugned order was stayed, directing that no further

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**Interpretation:** The stay order effectively halts the

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**Application:** The IRP is prohibited from initiating or continuing any actions that fall

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Bhavit…
- **Respondents:** Sporta Technologie…; Madan Bajrang Lal…

## Timeline

- **2024-02-14 — Impugned Ord…**: Date of the order that was stayed, directing the IRP not to take further steps in the…
- **2024-04-03 — Appellant Sub…**: Mr. Arun Kathpalia, Sr. Advocate for the…

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