# In the matter of Bilt Graphic Paper Products Ltd. CP. (IB) 149-(MB)-2018

> NCLT judgment dated 2019-05-09. Citation: TCN-2019-NCLT-03369. The case involves IDBI Bank Ltd as the applicant and Bilt Graphic Paper Products Ltd as the…

- **Court:** NCLT
- **Order date:** 9 May 2019
- **Citation:** TCN-2019-NCLT-03369
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/bilt-graphic-paper-products-ltd-cp-ib-149-mb-2018-17a0d3e6

## Summary

### Background

The case involves IDBI Bank Ltd as the applicant and Bilt Graphic Paper Products Ltd as the corporate debtor. The Corporate Debtor informed the court that a petition was filed before the High Court of Delhi, which passed a status quo order on 15.2.2018 regarding the petition lodged with NCLT. The Delhi High Court's order was modified on 22.11.2018, directing that the interim order dated 15.2.2018 be modified to the extent that directives issued by RBI's letter dated 16.1.2018 and 23.1.2018 are stayed. The Corporate Debtor also submitted that a transfer petition was filed before the Supreme Court by the Corporate Debtor against the Reserve Bank of India.

## Facts

IDBI Bank Ltd initiated proceedings against Bilt Graphic Paper Products Ltd under Section 7 of the Insolvency & Bankruptcy Code, 2016. The Corporate Debtor, Bilt Graphic Paper Products Ltd, informed the NCLT that a petition was filed before the High Court of Delhi, which issued a status quo order on 15.2.2018 concerning the NCLT proceedings. This order was later modified on 22.11.2018. The Corporate Debtor also filed a transfer petition (Civil No. 1971/2018) before the Supreme Court against the Reserve Bank of India. The Supreme Court, on 3.12.2018, directed that status quo be maintained. The relevance of these facts lies in the potential conflict between the NCLT proceedings and the orders of the High Court and Supreme Court, which prompted the NCLT to adjourn the

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## Issues and analysis

### Issue 1: Whether the NCLT should proceed with the insolvency resolution process given the status quo orders …

**Ratio:** The principle of judicial comity dictates that lower courts should respect the orders and

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**Reasoning:** The NCLT recognized the Supreme Court's order to maintain status quo and the High Court's

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**Interpretation:** The interpretation of judicial comity requires the NCLT to defer to the orders

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**Application:** Given the Supreme Court's direction to maintain status quo and the High Court's

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## Parties

- **Judges:** V. P. S…; RavikumarDu…
- **Appellants:** IDBI Bank…
- **Respondents:** Bilt Graphic…

## Timeline

- **2018-01-16 — RBI Lett…**: RBI issued a letter, the directives of which…
- **2018-01-23 — RBI Lett…**: RBI issued a letter, the directives of which…

## 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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