# In the matter of Orchid Pharma Ltd. MA-646 & 782-2019 in CP-540-IB-2017

> NCLT judgment dated 2019-08-05. Citation: TCN-2019-NCLT-02094. The Financial Creditor (Indian Bank) filed an impleadment application seeking directions…

- **Court:** NCLT
- **Order date:** 5 Aug 2019
- **Citation:** TCN-2019-NCLT-02094
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/orchid-pharma-ltd-ma-646-782-2019-in-cp-540-ib-2017-50fa3309

## Summary

### Background

The Financial Creditor (Indian Bank) filed an impleadment application seeking directions regarding the distribution of margin money. The NCLT considered this application in light of a stay granted by the NCLAT in related appeals.

## Facts

Indian Bank, acting as the Financial Creditor, submitted an impleadment application, MA/782/2019 , within the context of MA/646/2019 . This application sought specific directions concerning the method of distributing margin money. The matter was brought before the National Company Law Tribunal, Chennai Bench, on August 5, 2019, for a hearing. The NCLT Bench observed that granting this impleadment application would not impact the stay order previously issued by the National Company Law Appellate Tribunal (NCLAT) in Appeal Nos. 761 & 762 of 2019. Consequently, the NCLT decided to allow MA/782/2019, thereby permitting the applicants to be included as respondents in MA/646/2019. However, the NCLT also recognized that the relief requested in MA/646/2019 had

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## Issues and analysis

### Issue 1: Whether the impleadment application …

**Ratio:** An impleadment application can be allowed if it does not interfere with existing stay

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

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**Interpretation:** The court interpreted the scope of its power to allow impleadment, considering

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**Application:** The NCLT allowed MA/782/2019 because it found no conflict with the NCLAT's stay

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## Parties

- **Judges:** B.S.V. Prakash…; S. VIJAYARA…
- **Appellants:** Indian…
- **Respondents:** ORCHID PHAR…; Resolution…; +1 more
- **Advocates:** T. Ravich…; D. FLAV…; +5 more

## Timeline

- **August 5, 2019 — Hearing of App…**: Attendance cum order sheet of the hearing of MA/782/2019 in MA/646/2019 in CP/540/IB/2017…
- **August 5, 2019 — Impleadment Application…**: The NCLT allowed MA/782/2019, making the…

## 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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