# In the matter of Vasan Health Care Pvt. Ltd. MA-1050-2019 in CA-1-2017

> NCLT judgment dated 2019-10-03. Citation: TCN-2019-NCLT-01104. The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Vasan…

- **Court:** NCLT
- **Order date:** 3 Oct 2019
- **Citation:** TCN-2019-NCLT-01104
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vasan-health-care-pvt-ltd-ma-1050-2019-in-ca-1-2017-18f7dfba

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Vasan Health Care Private Limited. The Interim Resolution Professional (IRP), Mr. V. Mahesh, was appointed. An appeal was filed by the Corporate Debtor against the order initiating CIRP. The High Court of Madras granted a stay on the CIRP. Subsequently, the Division Bench of the High Court vacated the stay, allowing the CIRP to proceed.

## Facts

On 2017-04-21, an order was passed initiating the Corporate Insolvency Resolution Process (CIRP) against M/s. Vasan Health Care Private Limited, with Mr. V. Mahesh appointed as the Interim Resolution Professional (IRP). The IRP took over the management of the Corporate Debtor and issued a newspaper publication on 2017-04-24, inviting claims from creditors. On 2017-05-01, the Corporate Debtor appealed the order. The High Court of Madras granted a stay on 2017-05-04. The Division Bench of the High Court of Madras vacated the stay on 2019-09-05, allowing the CIRP to continue. The IRP requested permission to continue the CIRP and make fresh public announcements, as the initial announcement period had lapsed due to the stay. The NCLT order dated 2017-04-21 was revived after

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## Issues and analysis

### Issue 1: Whether the order initiating the Corporate Insolvency Resolution Process (CIRP) is revived upon the …

**Ratio:** When a stay order on a lower court's order is vacated by a higher court, the original

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**Reasoning:** The court reasoned that the stay order merely suspends the operation of the original

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**Interpretation:** The interpretation is that a stay order is a temporary suspension of an order,

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**Application:** In this case, the High Court's stay order suspended the NCLT's order initiating

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## Parties

- **Judges:** CH. MOHD SHARIEF…; Anil Ku…
- **Appellants:** V MAHESH (RP)…
- **Respondents:** Vasan Health Care…; ALCONS LABORATORIE…

## Timeline

- **2017-04-21 — CIRP Initiati…**: NCLT passed an order initiating CIRP against…
- **2017-04-24 — Public Annou…**: IRP issued a newspaper publication…

## 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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