# In the matter of Raheja Developers Ltd. (IB)-2939(PB)-2019

> NCLT judgment dated 2020-01-06. Citation: TCN-2020-NCLT-02483. The case involves Dr. Vivek Mahendru as the petitioner/applicant and M/s. Raheja Developers…

- **Court:** NCLT
- **Order date:** 6 Jan 2020
- **Citation:** TCN-2020-NCLT-02483
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/raheja-developers-ltd-ib-2939pb-2019-fe0249d7

## Summary

### Background

The case involves Dr. Vivek Mahendru as the petitioner/applicant and M/s. Raheja Developers Ltd. as the respondent. It pertains to an application under Section 7 of the Insolvency and Bankruptcy Code, 2016. The corporate debtor's counsel informed the court that the Hon'ble NCLAT had granted a stay in Company Appeal (AT) (Insolvency) No. 864 of 2019, dated 17.09.2019, which restricted the Interim Resolution Professional from making any publication, calling for claims if not published, and from constituting a Committee of Creditors if not yet constituted. The pendency of the appeal should not hinder Mr. Navin Raheja, the appellant, from negotiating with the 1st and 2nd Respondents and the Interveners to reach a settlement.

## Facts

Dr. Vivek Mahendru filed an application against M/s. Raheja Developers Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The corporate debtor's counsel informed the NCLT that the NCLAT had granted a stay order in Company Appeal (AT) (Insolvency) No. 864 of 2019, dated 17.09.2019. This stay order restricted the Interim Resolution Professional from publishing claims and forming a Committee of Creditors. The NCLAT also stated that the pendency of the appeal should not prevent Mr. Navin Raheja from negotiating a settlement with the respondents and interveners. The judgment has been reserved by the Hon'ble Appellate Tribunal.

## Issues and analysis

### Issue 1: Whether the NCLT should proceed with the insolvency resolution process under Section 7 of the …

**Ratio:** A stay order issued by a higher court (NCLAT) suspends the proceedings before a lower

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**Reasoning:** The court acknowledged the stay order granted by the NCLAT, which directly impacts the

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**Interpretation:** The stay order is interpreted as a temporary suspension of the insolvency

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**Application:** Given the NCLAT's stay order, the NCLT correctly decided to suspend the

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## Parties

- **Judges:** B.S.V. Prakash…; SH. S. K.…
- **Appellants:** Vivek Mah…
- **Respondents:** M/s. Raheja…
- **Advocates:** Abhishek…; Viren S…; +2 more

## Timeline

- **2019-09-17 — NCLAT Stay…**: NCLAT grants stay in Company Appeal (AT) (Insolvency) No. 864 of 2019, restricting the…
- **2020-01-06 — NCLT Ord…**: NCLT acknowledges the NCLAT stay order and directs the registry not to list the matter…

## 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)

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