# In the matter of Reliance Communications Limited C.P. (IB)-1387-(MB)-2017

> NCLT judgment dated 2019-05-07. Citation: TCN-2019-NCLT-03431. The case involves an application related to a Corporate Insolvency Resolution Process (CIRP)…

- **Court:** NCLT
- **Order date:** 7 May 2019
- **Citation:** TCN-2019-NCLT-03431
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/reliance-communications-limited-cp-ib-1387-mb-2017-0da8c38a

## Summary

### Background

The case involves an application related to a Corporate Insolvency Resolution Process (CIRP) initiated against Reliance Communications Limited. The Resolution Professional sought directions in light of an order passed by the Hon'ble NCLAT. The initial petition under Section 9 of the IBC was admitted on 15.05.2018, and an Interim Resolution Professional (IRP) was appointed. However, the CIRP was stayed by the NCLAT on 30.05.2018. Subsequently, the NCLAT vacated the stay on 30.04.2019, directing the Tribunal to proceed with the matter.

## Facts

Ericsson India Private Limited initiated insolvency proceedings against Reliance Communications Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petition was admitted on 2018-05-15, and an Interim Resolution Professional (IRP) was appointed. The Corporate Insolvency Resolution Process (CIRP) was stayed by the NCLAT on 2018-05-30. Subsequently, the NCLAT vacated the stay on 2019-04-30, directing the NCLT to proceed with the matter. The Resolution Professional then applied for directions from the NCLT.

## Issues and analysis

### Issue 1: Whether the NCLT should proceed with the CIRP against Reliance Communications Limited following the …

**Ratio:** The orders of appellate tribunals are binding on lower tribunals. When a stay order is

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**Reasoning:** The NCLAT's vacation of the stay order removes the impediment to the CIRP. The NCLT is

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**Interpretation:** The NCLAT's order is interpreted as a clear instruction to the NCLT to resume

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**Application:** Since the NCLAT vacated the stay, the NCLT must proceed with the CIRP. The

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## Parties

- **Judges:** V. P. S…; Ravikumar…; +1 more
- **Appellants:** Ericsson India…
- **Respondents:** Reliance Communica…

## Timeline

- **2018-05-15 — Petition Ad…**: The petition under Section 9 of…
- **2018-05-18 — IRP Appo…**: The applicant was appointed as…

## 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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