# In the matter of Darshan Gandhi vs. Hemant Mehta & Ors. I.A. No. 434 of 2023 with Contempt Case (AT) No. 10 of 2021 in Company Appeal (AT) (Insolvency) No. 79 & 1095 of 2021

> NCLAT judgment dated 2023-06-19. Citation: TCN-2023-NCLAT-00435. The case involves Company Appeal (AT) (Insolvency) No. 79 of 2021 and I.A. No. 434 of 2023,…

- **Court:** NCLAT
- **Order date:** 19 Jun 2023
- **Citation:** TCN-2023-NCLAT-00435
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/darshan-gandhi-vs-hemant-mehta-ors-ia-no-434-of-2023-with-contempt-case-9dda8d0a

## Summary

### Background

The case involves Company Appeal (AT) (Insolvency) No. 79 of 2021 and I.A. No. 434 of 2023, which were filed under Section 61 of the Insolvency and Bankruptcy Code, 2016. The appellant, Darshan Gandhi, challenged an order dated 18.01.2021 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench, Court III) in I.A. 33/2021 and I.A. 2489/2020 in C.P. (IB)/4135(MB)2018. The appeal was initially listed on 30.01.2021 and subsequently on 12.02.2021. The case also involved Contempt Case (AT) No. 10 of 2021 and Company Appeal (AT) (Insolvency) No. 1095 of 2021, which were connected to the same matter. The core issue revolved around the corporate insolvency resolution process of Lok Housing and Constructions Ltd., with various interim applications and

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## Facts

Darshan Gandhi, the ex-Director of Lok Housing and Constructions Ltd., filed Company Appeal (AT) (Insolvency) No. 79 of 2021 challenging an order by the Adjudicating Authority (NCLT, Mumbai Bench) dated 18.01.2021. Hemant Mehta, the Resolution Professional, and USV Housing Pvt. Ltd. were the respondents. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016. The NCLAT had issued an interim order on 12.02.2021 directing a 'status quo'. Subsequently, a Contempt Case (AT) No. 10 of 2021 was filed by Darshan Gandhi alleging that the respondents violated the status quo by proceeding with the Committee of Creditors (CoC) meeting and actions related to the insolvency resolution process, including the publication of FORM-G. Company Appeal (AT)

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order dated 18.01.2021 warrants intervention under Section 61 …

**Ratio:** Section 61 of the Insolvency and Bankruptcy Code, 2016 provides the grounds for appeal

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**Reasoning:** The NCLAT considered the facts and circumstances of the case, including the various

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**Interpretation:** Section 61 allows appeals against orders of the Adjudicating Authority if they

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**Application:** The NCLAT ultimately disposed of the appeal, directing the Adjudicating

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## Parties

- **Judges:** Anant Bijay…; Alok Sriv…
- **Appellants:** DARSHAN G…
- **Respondents:** Lok Housing and…; Hemant…

## Timeline

- **2021-01-18 — Order by Adjudicating…**: Order passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench,…
- **2021-01-30 — Appeal F…**: The instant Appeal was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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