# In the matter of Varun Gupta Vs India Steel Works Limited

> NCLAT judgment dated 2024-05-22. Citation: TCN-2024-NCLAT-00416. The case involves a company appeal before the National Company Law Appellate Tribunal…

- **Court:** NCLAT
- **Order date:** 22 May 2024
- **Citation:** TCN-2024-NCLAT-00416
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/varun-gupta-vs-india-steel-works-limited-66cecf5f

## Summary

### Background

The case involves a company appeal before the National Company Law Appellate Tribunal (NCLAT). The appellant is ready to deposit the amount claimed in part-4 of the application, including the entire principal amount today and the remaining amount of Rs. 2,06,54,089/- within four weeks. The NCLAT has directed that the amount be deposited within three days before the Registrar. The appellant claims to be a solvent entity and will endeavor to settle all issues with the operational creditor and close the proceedings. The impugned order dated 08.05.2024 is stayed.

## Facts

Varun Gupta filed an appeal against India Steel Works Ltd. before the NCLAT. The appellant, Varun Gupta, has stated their readiness to deposit the amount claimed in part-4 of the application, which includes depositing the entire principal amount immediately and the remaining Rs. 2,06,54,089/- within four weeks. The NCLAT has ordered the deposit to be made within three days before the Registrar. The appellant asserts that the company is a solvent entity and will attempt to settle all issues with the operational creditor to conclude the proceedings. The impugned order dated 08.05.2024 has been stayed. Kotak Mahindra Bank seeks liberty to file intervention application.

## Issues and analysis

### Issue 1: Whether the appellant should be granted a stay …

**Ratio:** The power to grant a stay is inherent in appellate tribunals to maintain the status quo

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**Reasoning:** The NCLAT granted the stay, likely considering the appellant's willingness to deposit the

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**Interpretation:** A stay order temporarily suspends the operation of the lower court's order,

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**Application:** The stay on the impugned order prevents its enforcement, allowing the appellant

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Varun G…
- **Respondents:** India Steel Works…

## Timeline

- **2024-05-08 — Impugned Ord…**: Date of the order being appealed against,…
- **2024-05-22 — NCLAT Or…**: NCLAT directs the appellant to deposit the claimed amount and allows time for settlement…

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