# In the matter of Essel Infraprojects Ltd. vs. J.C. Flower Asset Reconstruction Pvt. Ltd.

> NCLAT judgment dated 2023-07-11. Citation: TCN-2023-NCLAT-00392. The appeal was filed against the order dated 2023-06-02 regarding Restoration Application No.…

- **Court:** NCLAT
- **Order date:** 11 Jul 2023
- **Citation:** TCN-2023-NCLAT-00392
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/essel-infraprojects-ltd-vs-jc-flower-asset-reconstruction-pvt-ltd-69be3e4b

## Summary

### Background

The appeal was filed against the order dated 2023-06-02 regarding Restoration Application No. 13/2023, where the Adjudicating Authority directed the Respondent to maintain status-quo concerning hypothecated assets. A Company Petition filed by the Financial Creditor had a status-quo order passed on 2023-02-28 but was dismissed on 2023-03-14 because a CIRP had been initiated against the Corporate Debtor on 2023-03-01. The Adjudicating Authority granted time to the Appellant to file a reply and passed a status-quo order when the Restoration Application came up.

## Facts

A status-quo order was passed on 2023-02-28. The Company Petition was dismissed on 2023-03-14 due to the initiation of CIRP against the Corporate Debtor on 2023-03-01. The order dated 2023-03-01 was set aside by the Appellate Tribunal on 2023-04-28. A Restoration Application was filed. The Adjudicating Authority granted time to the Appellant to file a reply and passed a status-quo order. The Appellant challenged the status-quo order, contending that the Adjudicating Authority ought not to have passed the order of status-quo.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in passing a status-quo order when the Restoration …

**Ratio:** The Appellate Tribunal has the power to review and set aside orders of the Adjudicating

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**Reasoning:** The Appellate Tribunal found no good ground to interfere with the order impugned dated

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**Interpretation:** The interpretation of the law lies in whether the Adjudicating Authority acted

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**Application:** In this specific case, the Appellate Tribunal determined that there was no

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Essel Infraproject…
- **Respondents:** JC Flower Asset…

## Timeline

- **2023-02-28 — Status-quo…**: Status-quo order was passed…
- **2023-03-01 — CIRP Init…**: CIRP was initiated…

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