# In the matter of Orchid Pharma Ltd. MA-646 & 763-2019 in CP-540-IB-2017

> NCLT judgment dated 2019-08-05. Citation: TCN-2019-NCLT-02095. The case involves an impleadment application (MA/763/2019) filed by Allahabad Bank in…

- **Court:** NCLT
- **Order date:** 5 Aug 2019
- **Citation:** TCN-2019-NCLT-02095
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/orchid-pharma-ltd-ma-646-763-2019-in-cp-540-ib-2017-98dfdee3

## Summary

### Background

The case involves an impleadment application (MA/763/2019) filed by Allahabad Bank in MA/646/2019, seeking directions regarding the distribution of margin money. The Bench noted that allowing the application would not affect the stay granted by NCLAT in Appeal Nos. 761 & 762 of 2019. The application was allowed, but the Resolution Professional was directed to mention MA/646/2019 after the pending appeal before NCLAT is decided.

## Facts

Allahabad Bank, as a Financial Creditor, filed an impleadment application (MA/763/2019) in MA/646/2019. The application sought directions regarding the distribution of margin money. The NCLT Chennai Bench considered the application in light of a stay order granted by the NCLAT in Appeal Nos. 761 & 762 of 2019. The Bench determined that allowing the application would not affect the stay. The Resolution Professional was directed to mention MA/646/2019 after the appeal pending before NCLAT is decided. The corporate debtor is Orchid Pharma Ltd.

## Issues and analysis

### Issue 1: Whether the impleadment application (MA/763/2019) filed by Allahabad Bank in MA/646/2019 should be …

**Ratio:** An impleadment application can be allowed if it does not contravene an existing stay

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

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**Interpretation:** This interpretation suggests that the NCLT is mindful of the hierarchy of

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**Application:** In this specific case, the court applied the principle by determining that

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## Parties

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

## Timeline

- **2017-01-01 — Petition…**: CP/540/IB/2017 was…
- **2019-08-05 — Hearing…**: Hearing held on…

## 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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