# In the matter of Orchid Pharma Ltd. MA-646 & 704-2019 in CP-540-IB-2017

> NCLT judgment dated 2019-08-05. Citation: TCN-2019-NCLT-02105. Kotak Mahindra Bank Limited, the Financial Creditor, filed an impleadment application…

- **Court:** NCLT
- **Order date:** 5 Aug 2019
- **Citation:** TCN-2019-NCLT-02105
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/orchid-pharma-ltd-ma-646-704-2019-in-cp-540-ib-2017-120bdf10

## Summary

### Background

Kotak Mahindra Bank Limited, the Financial Creditor, filed an impleadment application (MA/704/2019 in MA/646/2019 in CP/540/IB/2017) seeking directions regarding the distribution of margin money. The Bench noted that allowing the application would not affect the stay granted by the NCLAT in Appeal Nos. 761 & 762 of 2019.

## Facts

Kotak Mahindra Bank Limited, as the Financial Creditor, filed an impleadment application (MA/704/2019) within another application (MA/646/2019) related to a corporate insolvency resolution process (CP/540/IB/2017) concerning Orchid Pharma Ltd. The impleadment application sought directions regarding the distribution of margin money. The NCLAT had issued a stay order in Appeal Nos. 761 & 762 of 2019. The court considered whether allowing the impleadment application would affect this stay. The court found that it would not, and therefore allowed the application. The Resolution Professional was directed to mention MA/646/2019 after the NCLAT appeal is decided. This indicates that the outcome of the appeal could influence the proceedings of MA/646/2019.

## Issues and analysis

### Issue 1: Whether the impleadment application MA/704/2019 should be allowed, considering the stay order …

**Ratio:** An impleadment application can be allowed if it does not contravene or undermine existing

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**Reasoning:** The court reasoned that allowing the impleadment application would not have any bearing

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**Interpretation:** The interpretation is that procedural steps in an insolvency process can

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**Application:** The court applied this principle by examining the nature of the impleadment

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** Kotak Mahindra…
- **Respondents:** ORCHID PHAR…; Resolution…

## Timeline

- **2017-01-01 — CP/540/IB/201…**: Corporate Insolvency Resolution Process…
- **2019-01-01 — Appeal Nos. 761 &…**: Appeals filed before the…

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