# In the matter of Associate Decor Ltd.

> NCLT judgment dated 2023-11-22. Citation: TCN-2023-NCLT-00645. The case involves IA Nos.231 and 394 of 2023 in CP (IB) No.51/BB/2018 concerning Oriental Bank…

- **Court:** NCLT
- **Order date:** 22 Nov 2023
- **Citation:** TCN-2023-NCLT-00645
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/associate-decor-ltd-673081da

## Summary

### Background

The case involves IA Nos.231 and 394 of 2023 in CP (IB) No.51/BB/2018 concerning Oriental Bank of Commerce as the petitioner and M/s. Associate Decor Ltd. as the respondent. The applications were listed for pronouncement of orders. However, the Hon'ble High Court of Karnataka, in Writ Petition No.483 of 2023, quashed the Resolution Plan of R-5 approved in the 2nd adjourned 19th CoC meeting dated 11.02.2020 and the minutes of the 22nd meeting of the CoC of the Corporate Debtor. The High Court also allowed the CoC to reconsider the restructuring proposal submitted by the Petitioner under Section 12A of the Code.

## Facts

Oriental Bank of Commerce initiated insolvency proceedings against M/s. Associate Decor Ltd. The Resolution Plan R-5, approved in the 19th CoC meeting on 11.02.2020, was challenged in the High Court of Karnataka. The High Court, in Writ Petition No.483 of 2023, quashed the Resolution Plan and allowed the CoC to reconsider the restructuring proposal under Section 12A. The NCLT was scheduled to pronounce orders on IA Nos.231 and 394 of 2023, but deferred the pronouncement due to the High Court's order. The High Court's order dated 21.11.2023 was stayed for one week by its order dated 22.11.2023.

## Issues and analysis

### Issue 1: Whether the NCLT should proceed with the pronouncement of orders in IA Nos.231 and 394 of 2023 …

**Ratio:** The principle of judicial comity and the hierarchy of courts dictate that lower courts

…

**Reasoning:** The NCLT recognized that the High Court's order quashing the Resolution Plan

…

**Interpretation:** The High Court's order is interpreted as a directive to reconsider the

…

**Application:** Given the High Court's order, the NCLT correctly deferred the pronouncement of

…

## Parties

- **Judges:** T. Krishn…; Manoj Kumar…
- **Appellants:** Oriental Bank of…
- **Respondents:** M/s. Associate…

## Timeline

- **2020-02-11 — 19th CoC M…**: The 2nd adjourned 19th CoC meeting was held,…
- **2023-11-21 — High Court…**: The Hon'ble High Court of Karnataka passed an order in Writ Petition No.483 of 2023,…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/associate-decor-ltd-673081da