# In the matter of Hindusthan National Glass & Industries Ltd. C.P. (IB)-279(KB)2021

> NCLT judgment dated 2021-11-16. Citation: TCN-2021-NCLT-00495. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against the…

- **Court:** NCLT
- **Order date:** 16 Nov 2021
- **Citation:** TCN-2021-NCLT-00495
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hindusthan-national-glass-industries-ltd-cp-ib-279kb2021-7ab0c3b9

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against the Corporate Debtor. An order was previously passed on October 21, 2021, in CP(IB) No.369/KB/2020, initiating CIRP against the Corporate Debtor. However, Members of the Suspended Board filed an appeal against the admission order before the NCLAT, which stayed the constitution of the Committee of Creditors but allowed the IRP to continue in possession of the Corporate Debtor.

## Facts

The key facts are as follows: A CIRP was initiated against the Corporate Debtor vide order dated 21.10.2021 in CP(IB) No.369/KB/2020. Subsequently, Members of the Suspended Board filed an appeal before the NCLAT against the admission order. The NCLAT stayed the constitution of the Committee of Creditors but allowed the IRP to continue in possession. The present case, C.P. (IB)/279(KB)2021, was then dismissed as infructuous, with liberty granted to the Financial Creditor to raise its claim with the IRP and to file appropriate applications for revival company petition depending on the decision of the Hon'ble NCLAT regarding admission. The relevance of these facts lies in the procedural impact of the NCLAT's stay order on the ongoing CIRP.

## Issues and analysis

### Issue 1: Whether C.P. (IB)/279(KB)2021 should be dismissed as infructuous due to the NCLAT's stay order on …

**Ratio:** When an appellate tribunal stays the constitution of the Committee of Creditors in a

…

**Reasoning:** The court reasoned that since the NCLAT had stayed the constitution of the Committee of

…

**Interpretation:** The interpretation is that a stay order from a higher court directly impacting

…

**Application:** The NCLAT's stay order on the constitution of the CoC directly impacted the

…

## Parties

- **Judges:** Rajasekha…; Balraj…
- **Respondents:** HINDUSTHAN…

## Timeline

- **2021-10-21 — Order for CIRP…**: Order dated 21.10.2021 in CP(IB) No.369/KB/2020, CIRP already been initiated against the…
- **2021-11-16 — Hearing…**: Hearing on 16th…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/hindusthan-national-glass-industries-ltd-cp-ib-279kb2021-7ab0c3b9