# In the matter of Ahijeet MADC Nagpur Energy Pvt. Ltd. MA 1068 & 1082-2019 In CP(IB)-1315-(MB)-2017

> NCLT judgment dated 2019-03-26. Citation: TCN-2019-NCLT-04346. The case involves an application (MA 1082/2019) filed by the Financial Creditor EARCL seeking…

- **Court:** NCLT
- **Order date:** 26 Mar 2019
- **Citation:** TCN-2019-NCLT-04346
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ahijeet-madc-nagpur-energy-pvt-ltd-ma-1068-1082-2019-in-cpib-1315-mb-2017-6160d798

## Summary

### Background

The case involves an application (MA 1082/2019) filed by the Financial Creditor EARCL seeking an interim stay on the distribution of proceeds of settlement received from R-Infra by the Corporate Debtor until the final disposal of the original application and the Liquidator application by the National Company Law Tribunal (NCLT).

## Facts

The Financial Creditor, EARCL, filed MA 1082/2019 seeking an interim stay on the distribution of proceeds of settlement received by the Corporate Debtor from R-Infra. This stay was requested pending the final disposal of the original application and the Liquidator's application before the NCLT. The counsel for R1, the Liquidator, was present during the hearing. The court directed that notices be issued to R1 and R2, with a deadline of 29.03.2019 for filing replies, followed by a provision for rejoinder. The case was listed for disposal on 08.04.2019. The court also ordered that the status quo be maintained regarding the distribution of sale proceeds, indicating a temporary halt to any such distribution.

## Issues and analysis

### Issue 1: Whether an interim stay should be granted on the distribution of proceeds of settlement received …

**Ratio:** The principle of maintaining the status quo to prevent irreversible actions that could

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**Reasoning:** The court reasoned that an interim stay was necessary to prevent the distribution of

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**Interpretation:** The interpretation involves balancing the interests of the parties and ensuring

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**Application:** The court applied the principle by ordering a status quo on the distribution of

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** Alchemist Asset…
- **Respondents:** Abhijeet MADC…

## Timeline

- **2019-03-26 — Order Shee…**: Order sheet of the hearing of Mumbai Bench…
- **2019-03-29 — Reply Filing…**: Deadline for R1 and R2 to file their…

## 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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