# In the matter of Employees Provident Fund Organization Regional Office Royapettah Vs S Prabhu Liquidator Of Ms Abra Motors Private Limited

> NCLAT judgment dated 2024-06-21. Citation: TCN-2024-NCLAT-00377. The appellant challenged an order of the NCLT, Chennai, dated January 25, 2024, which allowed…

- **Court:** NCLAT
- **Order date:** 21 Jun 2024
- **Citation:** TCN-2024-NCLAT-00377
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/employees-provident-fund-organization-regional-office-royapettah-vs-s-prabhu-liq-39392d7f

## Summary

### Background

The appellant challenged an order of the NCLT, Chennai, dated January 25, 2024, which allowed an application under section 54 of the I&B Code, 2016, leading to the dissolution of the Corporate Debtor. This appeal is a subsequent challenge to a previous order where the appellant's claim was rejected due to no amount being left.

## Facts

The Appellant, Employees' Provident Fund Organization Regional Office Royapettah, had previously filed Company Appeal (AT) (CH) (Ins) No. 72/2024, challenging an order dated January 19, 2024, issued by the NCLT, Chennai. This prior order rejected the Appellant's claim on the grounds that no amount was left for distribution. The Respondent in that appeal had appeared and was directed to file a Counter Affidavit, which was still pending at the time of the current proceedings. The Appellant subsequently filed the present Company Appeal (AT) (CH) (Ins) No. 181/2024, challenging an Impugned Order dated January 25, 2024. This Impugned Order was passed by the NCLT, Chennai, in IA/1185(CHE)/2022 in IA(IBC)/1228(CHE)/2020 in IBA/42/2020. The application leading to this order

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## Issues and analysis

### Issue 1: Whether the dissolution order passed under section 54 of the I&B Code, 2016, should be stayed …

**Ratio:** The effect and operation of an order leading to the dissolution of a Corporate Debtor

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**Reasoning:** The NCLAT reasoned that allowing the dissolution order to proceed would close the door

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**Interpretation:** The court interpreted its powers to grant interim relief to prevent irreparable

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**Application:** In this case, the NCLAT applied this interpretation by directing an interim

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## Parties

- **Judges:** Sharad Kumar…; Jatindranat…
- **Appellants:** Employees'…
- **Respondents:** Abram Motors Pvt.…; CA S Prabhu…; +2 more
- **Advocates:** M.S. Viswa…; Pavithra Muralidha…; +4 more

## Timeline

- **January 19, 2024 — NCLT Order (Previous…**: NCLT, Chennai, rejected the appellant's claim in CA (AT) (CH) (Ins) No. 72/2024, stating…
- **January 25, 2024 — Impugned Order (Current…**: NCLT, Chennai, passed the Impugned Order in IA/1185(CHE)/2022 in IA(IBC)/1228(CHE)/2020…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54 — Dissolution of corporate debtor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54)

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