# In the matter of HN Reacon Pvt. Ltd.

> NCLT judgment dated 2023-09-20. Citation: TCN-2023-NCLT-01529. The case involves an application (IA-4903/2023) related to Company Petition IB-324/ND/2022. The…

- **Court:** NCLT
- **Order date:** 20 Sept 2023
- **Citation:** TCN-2023-NCLT-01529
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hn-reacon-pvt-ltd-55063f2e

## Summary

### Background

The case involves an application (IA-4903/2023) related to Company Petition IB-324/ND/2022. The Hon'ble NCLAT had previously taken a view that the petition should be admitted. The Adjudicating Authority's order was found unsustainable in law and set aside. The NCLAT directed the Adjudicating Authority to pass an order of admission of the Section 7 application.

## Facts

Karina Healthcare Pvt. Ltd. filed an application. The NCLAT had previously directed the admission of a Section 7 application. The Adjudicating Authority's initial order was set aside by the NCLAT. The NCLAT cited the precedent in 'Innoventive Industries Pvt. Ltd. Vs. ICICI Bank & Anr.' regarding the admission of Section 7 applications when debt and default are admitted. The Operational Creditor is required to deposit Rs. 2,00,000 with the IRP for immediate expenses. The key fact is the NCLAT's direction to admit the Section 7 application, which the NCLT is now implementing.

## Issues and analysis

### Issue 1: Whether the Company Petition IB-324/ND/2022 should be admitted following the directions of the …

**Ratio:** When the NCLAT directs the Adjudicating Authority to admit a Section 7 application, the

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**Reasoning:** The court reasoned that it had no other option but to admit the petition, as per the

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**Interpretation:** This interprets the appellate tribunal's (NCLAT) directives as binding on the

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**Application:** The NCLT applied this by admitting the Company Petition IB-324/ND/2022, as

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## Parties

- **Judges:** Sh. Ashok Kumar…; L. N. G…
- **Appellants:** Karina Healthcare…
- **Respondents:** HN Reacon Pvt.…

## Timeline

- **2023-07-21 — NCLAT Or…**: The Hon'ble National Company Law Appellate Tribunal (NCLAT) passed an order in Company…
- **2023-09-20 — NCLT Ord…**: The NCLT admitted Company Petition IB-324/ND/2022, initiated CIRP, declared a moratorium,…

## 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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