# In the matter of Stressed Assets Stabilization Fund Vs. Vistar Financiers Pvt. Ltd. & Ors. CA (AT) No. 416-2018

> NCLAT judgment dated 2018-08-01. Citation: TCN-2018-NCLAT-00172. The appeal was filed by 'M/s Stressed Assets Stabilization Fund' against the order dated 26th…

- **Court:** NCLAT
- **Order date:** 1 Aug 2018
- **Citation:** TCN-2018-NCLAT-00172
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/stressed-assets-stabilization-fund-vs-vistar-financiers-pvt-ltd-ors-ca-7030bec2

## Summary

### Background

The appeal was filed by 'M/s Stressed Assets Stabilization Fund' against the order dated 26th June, 2018, passed by the Adjudicating Authority (National Company Law Tribunal) Kolkata bench, Kolkata, which rejected the Appellant's application. The Corporate Insolvency Resolution Process (CIRP) was initiated against 'M/s Datre Corporation Ltd.' (Corporate Debtor) on 20th September, 2017. An order of moratorium was passed, and a Resolution Professional was appointed. The Committee of Creditors (CoC) was constituted, but the Appellant, being a related party to the Promoter of the Corporate Debtor, was excluded from the CoC. The Appellant filed an Interlocutory Application on 7th March, 2018, seeking to recall the order admitting CIRP, stay the CIRP, allow the Applicant to

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## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against 'M/s Datre Corporation Ltd.' (Corporate Debtor) on 20th September, 2017. 'M/s Stressed Assets Stabilization Fund' (Appellant) filed an Interlocutory Application seeking to recall the order admitting CIRP, stay the CIRP, allow the Applicant to attend CoC meetings, pass an order of liquidation, and initiate action against the RP and Corporate Debtor for suppressing material facts. The Appellant was a related party to the Promoter of the Corporate Debtor and was excluded from the Committee of Creditors (CoC). The 180-day period for CIRP was expiring on 18th March, 2018, and was extended by 90 days. The Adjudicating Authority dismissed the Appellant's application. The Appellant did not challenge the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority has the jurisdiction to entertain an application for recall of …

**Ratio:** The Adjudicating Authority does not have the jurisdiction to entertain an application for

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**Reasoning:** It is settled law that the Adjudicating Authority lacks the jurisdiction to entertain an

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**Interpretation:** This means that once an application under Section 7 of the Insolvency and

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**Application:** In this case, the Appellant's application for recall of the order admitting

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Stressed Assets…
- **Respondents:** Datre Corporation…; Vistar Financiers…
- **Advocates:** Raktim…; Kartikeya…; +2 more

## Timeline

- **2017-09-20 — CIRP Init…**: Corporate Insolvency Resolution Process initiated against 'M/s Datre Corporation Ltd.'…
- **2018-03-07 — Interlocutory…**: Appellant preferred an Interlocutory Application seeking to recall the order admitting…

## 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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