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

> NCLT judgment dated 2018-10-15. Citation: TCN-2018-NCLT-00568. The case involves an exparte award dated 27.04.2016 against the corporate debtor, which has…

- **Court:** NCLT
- **Order date:** 15 Oct 2018
- **Citation:** TCN-2018-NCLT-00568
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/cedar-infonet-pvt-ltd-ib-950-pb-2018-a0178eac

## Summary

### Background

The case involves an exparte award dated 27.04.2016 against the corporate debtor, which has been challenged under Section 34 of the Arbitration Act before the Bombay High Court. An interim stay order was passed by the Bombay High Court, effective since 12.02.2018, preventing the recovery or payment of the amount in question.

## Facts

An exparte award was issued on 27.04.2016 against the corporate debtor. This award has been challenged under Section 34 of the Arbitration Act before the Bombay High Court. The Bombay High Court has 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 this stay order. The case is before the National Company Law Tribunal (NCLT). The relevance of the stay order is that it directly impacts the ability to proceed with the recovery of the awarded amount.

## Issues and analysis

### Issue 1: Whether the amount related to the exparte award can be recovered given the existing interim stay …

**Ratio:** An interim stay order issued by a competent court prevents any action that would violate

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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 valid and subsisting stay order from a higher

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**Application:** In this specific case, the stay order from the Bombay High Court prevents the

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## Parties

- **Judges:** M. M. K…; DEEPTI M…
- **Appellants:** L & T Financial…
- **Respondents:** Cedar Infonet…

## Timeline

- **2016-04-27 — Exparte Awa…**: An exparte 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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