# In the matter of Sepset Properties Pvt.  Ltd. (IB)-200(PB)-2019

> NCLT judgment dated 2019-02-28. Citation: TCN-2019-NCLT-04634. The case involves a petition under Section 7 of the Insolvency & Bankruptcy Code. The…

- **Court:** NCLT
- **Order date:** 28 Feb 2019
- **Citation:** TCN-2019-NCLT-04634
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sepset-properties-pvt-ltd-ib-200pb-2019-c188e368

## Summary

### Background

The case involves a petition under Section 7 of the Insolvency & Bankruptcy Code. The respondent's counsel has placed on record a photocopy of an order dated 22.02.2019 passed in Writ Petition (Civil No. 205/2019), wherein the Hon'ble Supreme Court has stayed further proceedings before the NCLT (Principal Bench, New Delhi).

## Facts

Naresh Kumar Jain filed a petition/application against Sepset Properties Pvt. Ltd. under Section 7 of the Insolvency & Bankruptcy Code. The respondent's counsel presented a photocopy of a Supreme Court order dated 2019-02-22, which stayed further proceedings before the NCLT. This stay order directly impacts the NCLT proceedings, leading to the adjournment of the case.

## Issues and analysis

### Issue 1: Whether the NCLT proceedings should be stayed …

**Ratio:** When a higher court issues a stay order on proceedings before a lower court, the lower

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**Reasoning:** The NCLT acknowledges the Supreme Court's stay order and its binding effect on the

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**Interpretation:** The Supreme Court's stay order effectively suspends the proceedings before the

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**Application:** Given the Supreme Court's stay order, the NCLT is bound to adjourn the

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## Parties

- **Judges:** DEEPTI M…; SH. S.K MOH…
- **Appellants:** NARESH KUMA…
- **Respondents:** Sepset Properties…

## Timeline

- **2019-02-22 — Supreme Cour…**: The Hon'ble Supreme Court stayed further proceedings before the NCLT in Writ Petition…
- **2019-02-28 — NCLT Ord…**: The NCLT adjourned the matter sine-die with liberty to make an appropriate application…

## 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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