# In the matter of Lok Housing and Constructions Ltd. Vs. USV Pvt. Ltd. CA(AT)(Insolvency) No. 629-2019

> NCLAT judgment dated 2019-06-12. Citation: TCN-2019-NCLAT-00504. The appeal was filed by the 'Corporate Debtor' (Lok Housing and Construction Ltd.) against an…

- **Court:** NCLAT
- **Order date:** 12 Jun 2019
- **Citation:** TCN-2019-NCLAT-00504
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/lok-housing-and-constructions-ltd-vs-usv-pvt-ltd-ca-72558f5c

## Summary

### Background

The appeal was filed by the 'Corporate Debtor' (Lok Housing and Construction Ltd.) against an impugned order dated May 1, 2019, claiming that their right to file a reply was forfeited. The respondent, USV Private Limited, a financial creditor, stated that the Adjudicating Authority (NCLT), Mumbai, had already admitted the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, on June 3, 2019. The appellant's counsel stated that they had information about the admission of the Section 7 application but had not yet received a copy of the order.

## Facts

Lok Housing and Construction Ltd., the 'Corporate Debtor', filed an appeal against an order dated May 1, 2019, which allegedly forfeited their right to file a reply. USV Private Limited, the 'Financial Creditor', informed the court that the NCLT, Mumbai, had admitted a Section 7 application under the Insolvency and Bankruptcy Code, 2016, on June 3, 2019. The appellant acknowledged the admission of the Section 7 application but stated they had not yet received a copy of the order. The admission of the Section 7 application is a key fact, as it directly impacts the survival of the appeal filed by the Corporate Debtor.

## Issues and analysis

### Issue 1: Whether the present appeal survives in light of the admission of the Section 7 application under …

**Ratio:** An appeal does not survive if the underlying application (in this case, Section 7

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**Reasoning:** The court reasoned that the admission of the Section 7 application renders the present

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**Interpretation:** The interpretation is that once a Section 7 application is admitted, any appeal

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**Application:** Since the Section 7 application was admitted by the NCLT, Mumbai, the court

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## Parties

- **Judges:** A.I.S. C…; KanthiNar…
- **Respondents:** Lok Housing and…; USV Private…

## Timeline

- **2019-05-01 — Impugned…**: The Corporate Debtor's right to file a reply was…
- **2019-06-03 — Admission of Section 7…**: The Adjudicating Authority (NCLT), Mumbai, admitted the application under Section 7 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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