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

> NCLT judgment dated 2019-10-03. Citation: TCN-2019-NCLT-01097. 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-01097
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/vasan-health-care-services-pvt-ltd-ma-1050-2019-in-ca-1-2017-aca337d8

## Summary

### Background

The case involves a Corporate Insolvency Resolution Process (CIRP) initiated against M/s. Vasan Health Care Private Limited. The CIRP was triggered by an application. An Interim Resolution Professional (IRP), Mr. V. Mahesh, was appointed. The Corporate Debtor filed an appeal against the order initiating CIRP. A Company Petition was filed before the High Court of Madras, which granted a stay on the CIRP proceedings. Subsequently, the Division Bench of the High Court vacated the stay. The IRP requested permission to continue the CIRP and make fresh public announcements, as the initial announcement period had lapsed due to the stay order.

## Facts

On 21.04.2017, an order was passed initiating the CIRP against M/s. Vasan Health Care Private Limited. Mr. V. Mahesh was appointed as the Interim Resolution Professional (IRP). On 01.05.2017, the Corporate Debtor filed an appeal against the order initiating CIRP. The High Court of Madras granted a stay on the CIRP proceedings on 04.05.2017. The Division Bench of the High Court of Madras vacated the stay on 05.09.2019. The IRP then requested permission to continue the CIRP and make fresh public announcements. The initial public announcement period had lapsed due to the stay order. The IRP had taken over the management of the Corporate Debtor and issued newspaper publications on 24.04.2017, inviting claims from creditors, as per Regulation 6(1) of the IBBI (Insolvency

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## Issues and analysis

### Issue 1: Whether the CIRP process against the Corporate Debtor can be continued after the stay order issued …

**Ratio:** When a stay order is vacated, the original order that was stayed is revived and becomes

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**Reasoning:** The court reasoned that since the stay order issued by the High Court of Madras had been

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**Interpretation:** This clarifies that a stay order's removal reinstates the original order's

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**Application:** The vacation of the stay order allowed the CIRP against M/s. Vasan Health Care

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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 — Order initiat…**: An order was passed initiating the Corporate Insolvency Resolution Process (CIRP) against…
- **2017-04-24 — Newspaper Pub…**: The Interim Resolution Professional (IRP) issued a newspaper publication inviting claims…

## 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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