# In the matter of Raj Singh Gehlot, Director of Ambience Pvt. Ltd. Vs. Vistra ITCL(India) Ltd. & Anr. CA(AT)(Ins)No. 971-2019

> NCLAT judgment dated 2019-10-25. Citation: TCN-2019-NCLAT-00186. The case involves an appeal against the admission of a Corporate Insolvency Resolution…

- **Court:** NCLAT
- **Order date:** 25 Oct 2019
- **Citation:** TCN-2019-NCLAT-00186
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/raj-singh-gehlot-director-of-ambience-pvt-ltd-vs-vistra-itcl-9614fdac

## Summary

### Background

The case involves an appeal against the admission of a Corporate Insolvency Resolution Process (CIRP) application under Section 7 of the Insolvency & Bankruptcy Code, 2016 against Ambience Pvt. Ltd. The application was filed by Vistra ITCL(India) Ltd. The appeal was admitted by a Hon'ble Member (Judicial) on August 27, 2019. However, one of the Hon'ble Members (Technical), Ms. Deepa Krishan, retired on July 19, 2019. The appellant challenged the admission order, arguing that the final order could not have been passed by a single Hon'ble Member (Judicial) after the other member's retirement.

## Facts

Vistra ITCL(India) Ltd. filed an application under Section 7 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Ambience Pvt. Ltd. The application was heard by a Divisional Bench of the National Company Law Tribunal (NCLT), comprising one Hon'ble Member (Judicial) and one Hon'ble Member (Technical). The NCLT admitted the application on August 27, 2019. However, prior to the admission order, one of the Hon'ble Members (Technical), Ms. Deepa Krishan, retired on July 19, 2019. Raj Singh Gehlot, Director of Ambience Pvt. Ltd., filed an appeal against the admission order, contending that the final order could not have been passed by a single Hon'ble Member (Judicial) after the retirement of the other

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## Issues and analysis

### Issue 1: Whether the admission order passed by the NCLT is valid, considering the retirement of one of the …

**Ratio:** The ratio is based on the principle that a judicial order should be passed by a properly

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**Reasoning:** The court reasoned that since one of the members of the bench had retired before the

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**Interpretation:** The interpretation is that a judicial order must be passed by a bench that is

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**Application:** In this case, the retirement of Ms. Deepa Krishan before the admission order

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## Parties

- **Judges:** S.J. Mukhop…; Venugop…; +1 more
- **Appellants:** Raj Singh…
- **Respondents:** Ambience Pv…; Vistra ITCL…

## Timeline

- **2018-11-01 — Orders p…**: Orders passed in…
- **2018-11-26 — Vistra to file…**: Vistra to file…

## 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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