# In the matter of IL & FS Financial Services Ltd. Vs.  Parsvnath Developers Ltd. CA(AT)(Insolvency) No. 7867-2019

> NCLAT judgment dated 2019-07-29. Citation: TCN-2019-NCLAT-00405. IL & FS Financial Services Ltd. ('Financial Creditor') filed an appeal against the order…

- **Court:** NCLAT
- **Order date:** 29 Jul 2019
- **Citation:** TCN-2019-NCLAT-00405
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/il-fs-financial-services-ltd-vs-parsvnath-developers-ltd-ca-99f1161a

## Summary

### Background

IL & FS Financial Services Ltd. ('Financial Creditor') filed an appeal against the order dated 16th July, 2019, passed by the Adjudicating Authority (National Company Law Tribunal) Special Principal Bench, New Delhi. The NCLT order stated that proceedings before the NCLT were stayed by the Hon'ble Supreme Court. The NCLT order also clarified that the Appellate Tribunal had passed an order wherein the Financial Creditor is an entity which is different from the NCLT. The Hon'ble Supreme Court had stayed the order on 08.05.2019.

## Facts

IL & FS Financial Services Ltd. filed an appeal against an order passed by the NCLT. The NCLT order referred to a stay order by the Supreme Court on proceedings before the NCLT. The appeal concerns the maintainability of an application under Section 7 of the Insolvency & Bankruptcy Code, 2016 by the allottees. The Hon'ble Supreme Court is to decide whether the allottees come within the meaning of 'Financial Creditor'. The Appellate Tribunal notes that the issue before the Hon'ble Supreme Court is not applicable to the 'Financial Creditor' like the Appellant, who disbursed the amount against the consideration for the time value of money and their application under Section 7. The order of stay passed by Hon'ble Supreme Court on 8th May, 2019, relates to the

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority can proceed with the matter in view of the stay order passed by …

**Ratio:** The Adjudicating Authority cannot proceed with the matter if there is a stay order passed

…

**Reasoning:** The Appellate Tribunal stated that the Adjudicating Authority cannot proceed with the

…

**Interpretation:** A stay order from a higher court effectively suspends the proceedings before a

…

**Application:** Since the Hon'ble Supreme Court had issued a stay order, the Adjudicating

…

## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +2 more
- **Appellants:** M/s. IL & FS…
- **Respondents:** Parsvnath…; M/s. Parsvnath…

## Timeline

- **2019-07-16 — Order by Adjudicating…**: Order passed by the Adjudicating Authority (National Company Law Tribunal) Special…
- **2019-05-08 — Stay Order by Supreme…**: Hon'ble Supreme Court stayed the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/il-fs-financial-services-ltd-vs-parsvnath-developers-ltd-ca-99f1161a