# 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-04338. 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-04338
- **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-d737e8cc

## 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 before the National Company Law Tribunal (NCLT), Mumbai Bench.

## Facts

The Financial Creditor, EARCL, has filed MA 1082/2019 seeking an interim stay on the distribution of proceeds of settlement received by the Corporate Debtor from R-Infra. The application is filed in the context of ongoing liquidation proceedings, as evidenced by the presence of the Liquidator. The Financial Creditor is seeking to prevent the distribution of these proceeds until the original application and the Liquidator's application are fully considered by the Tribunal. The settlement proceeds are relevant because they represent assets that could potentially be used to satisfy the debts owed to the Financial Creditor and other creditors. The status quo order suggests the court acknowledges the potential prejudice to the Financial Creditor if the proceeds are

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## Issues and analysis

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

**Ratio:** The principle of preserving the status quo and preventing irreversible harm to the

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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 legal issue concerns the court's power to grant interim relief to protect

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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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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