# In the matter of Shipra Hotels Ltd. Vs Value line Interiors Pvt. Ltd. CA (AT) No. 290-2018

> NCLAT judgment dated 2018-06-05. Citation: TCN-2018-NCLAT-00242. The case involves an appeal against the admission of an application by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 5 Jun 2018
- **Citation:** TCN-2018-NCLAT-00242
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/shipra-hotels-ltd-vs-value-line-interiors-pvt-ltd-ca-0afc0f02

## Summary

### Background

The case involves an appeal against the admission of an application by the Adjudicating Authority, despite pre-existing disputes. The appellant, Shipra Hotels Ltd., argues that the admission of the application causes irreparable damage and seeks immediate protection. The appellant offers to protect the interest of the Operational Creditor by keeping an amount of Rs. 42,58,844/- in an Escrow account.

## Facts

Shipra Hotels Ltd. filed an appeal against the admission of an application by the Adjudicating Authority, arguing that pre-existing disputes were not considered. The appellant claimed that the admission of the application would cause irreparable damage and sought immediate protection. To protect the interest of the Operational Creditor, the appellant offered to keep Rs. 42,58,844/- in an Escrow account. The Adjudicating Authority's order dated 01.06.2018 was passed in CP(IB) 25/ALD/2018. The appellant's counsel argued that the disputes predate the notice under Section 8 or the application under Section 9. The court acknowledged the urgency of the matter.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the application despite the existence of …

**Ratio:** The existence of pre-existing disputes can be a valid ground for challenging the

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**Reasoning:** The court acknowledged the appellant's argument that the Adjudicating Authority admitted

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**Interpretation:** This issue highlights the importance of considering pre-existing disputes when

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**Application:** In this case, the court considered the appellant's argument regarding

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## Parties

- **Judges:** Balvinder…
- **Appellants:** Shipra Hote…
- **Respondents:** Value Line…

## Timeline

- **2018-06-01 — Order by Adjudicating…**: The Adjudicating Authority passed…
- **2018-06-05 — Case Ment…**: The case was mentioned in court, and the court heard the learned counsel for the…

## Legal provisions

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

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