# In the matter of Orchid Pharma Ltd. MA-646 & 705-2019 in CP-540-IB-2017

> NCLT judgment dated 2019-08-05. Citation: TCN-2019-NCLT-02104. The Financial Creditor, State Bank of India, filed an impleadment application (MA/705/2019) in…

- **Court:** NCLT
- **Order date:** 5 Aug 2019
- **Citation:** TCN-2019-NCLT-02104
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/orchid-pharma-ltd-ma-646-705-2019-in-cp-540-ib-2017-6873b193

## Summary

### Background

The Financial Creditor, State Bank of India, filed an impleadment application (MA/705/2019) in MA/646/2019, seeking directions regarding the distribution of margin money. The bench noted that allowing this application would not affect the stay granted by the NCLAT in Appeal Nos. 761 & 762 of 2019.

## Facts

The State Bank of India, acting as the Financial Creditor, submitted an impleadment application, MA/705/2019, within the context of MA/646/2019. This application aimed to obtain specific directions concerning the distribution of margin money. The core issue revolved around whether granting this application would interfere with a stay order previously issued by the National Company Law Appellate Tribunal (NCLAT) in Appeal Nos. 761 and 762 of 2019. The court's decision hinged on its assessment of the potential impact of the impleadment on the existing stay. The corporate debtor is Orchid Pharma Ltd.

## Issues and analysis

### Issue 1: Whether the impleadment application (MA/705/2019) filed by the State Bank of India in MA/646/2019 …

**Ratio:** An impleadment application can be allowed if it does not prejudice existing orders or

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**Reasoning:** The court reasoned that allowing the impleadment application would not affect the stay

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**Interpretation:** The interpretation is that an impleadment application can be granted if it

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**Application:** The court applied this principle by determining that allowing SBI's impleadment

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## Parties

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

## Timeline

- **2019-08-05 — Hearing…**: Hearing held at…
- **2019-01-01 — Filing of MA/…**: MA/705/2019 filed in…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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