# In the matter of Cedar Infonet Pvt. Ltd. (IB)-950-(PB)-2018

> NCLT judgment dated 2018-10-15. Citation: TCN-2018-NCLT-00574. The case involves a petition where the counsel for the petitioner has drawn attention to an ex…

- **Court:** NCLT
- **Order date:** 15 Oct 2018
- **Citation:** TCN-2018-NCLT-00574
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cedar-infonet-pvt-ltd-ib-950-pb-2018-8a48d47c

## Summary

### Background

The case involves a petition where the counsel for the petitioner has drawn attention to an ex parte award dated 27.04.2016 against the corporate debtor. The award has been challenged under Section 34 of the Arbitration Act before the Bombay High Court, and an interim stay order has been passed by the Bombay High Court, operating since 12.02.2018. Due to the stay order, the amount cannot be recovered or paid.

## Facts

An ex parte award was issued on 27.04.2016 against the corporate debtor. This award was challenged under Section 34 of the Arbitration Act before the Bombay High Court. The Bombay High Court issued an interim stay order, effective from 12.02.2018, which prevents the recovery or payment of the amount related to the award. The petitioner is taking steps to vacate the stay order. The case is listed for further consideration on 20.11.2018. The relevance of the stay order is that it currently prevents the enforcement of the award.

## Issues and analysis

### Issue 1: Whether the interim stay order passed by the Bombay High Court prevents the recovery or payment of …

**Ratio:** An interim stay order issued by a competent court suspends the operation of the order or

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**Reasoning:** The court acknowledges the existence of the interim stay order passed by the Bombay High

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**Interpretation:** The interpretation is that a stay order effectively halts any proceedings or

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**Application:** The ratio applies to the facts because the Bombay High Court's stay order

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## Parties

- **Judges:** M. M. K…; DEEPTI M…
- **Appellants:** L & T Financial…
- **Respondents:** Cedar Infonet…
- **Advocates:** Nitesh…; Arveena S…; +3 more

## Timeline

- **2016-04-27 — Ex Parte…**: An ex parte award was issued…
- **2018-02-12 — Interim Sta…**: The Bombay High Court passed an interim order of stay, preventing the recovery of the…

## 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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