# In the matter of Sai Rayalaseema Paper Mills Ltd. IA 1124-2019, IA No. 276,277,1120 & 1230-2020 & IA (IBC)-410-2021 in CP (IB) No. 154-7-HDB-2019

> NCLT judgment dated 2022-06-20. Citation: TCN-2022-NCLT-02183. The case involves a company petition/application with multiple IA numbers, including IA…

- **Court:** NCLT
- **Order date:** 20 Jun 2022
- **Citation:** TCN-2022-NCLT-02183
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sai-rayalaseema-paper-mills-ltd-ia-1124-2019-ia-no-2762771120-1230-2020-ia-ibc-4-02e0e0d0

## Summary

### Background

The case involves a company petition/application with multiple IA numbers, including IA No.1124/2019, IA No.276,277,1120&1230/2020, and IA (IBC)/410/2021 in CP (IB) No.154/7/HDB/2019. The hearing was conducted via video conference. The corporate debtor is Sai Rayalaseema Paper Mills Ltd, with Oriental Bank of Commerce as the petitioner and Sai Rayalaseema Paper Mills Ltd as the respondent. The application was filed under Section 7 of the IBC.

## Facts

The case involves Sai Rayalaseema Paper Mills Ltd as the corporate debtor. Oriental Bank of Commerce filed a petition against the corporate debtor under Section 7 of the IBC. Several IAs were filed in connection with the CP(IB) No.154/7/HDB/2019. The Hon'ble High Court of Telangana passed an order dismissing CP(IB) No.2987 & 2553/2019. Subsequently, the Promoter filed a memo stating that the matter is no longer on record. This led the NCLT to dismiss CP(IB) No. 154/7/HDB/2019, aligning with the High Court's directions. The key fact is the High Court's dismissal of related proceedings, which directly influenced the NCLT's decision.

## Issues and analysis

### Issue 1: Whether CP(IB) No. 154/7/HDB/2019 should be dismissed in light of the order passed by the Hon'ble …

**Ratio:** When a higher court (High Court) dismisses a related proceeding, a lower court (NCLT)

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**Reasoning:** The NCLT reasoned that the High Court's dismissal of CP(IB) No.2987 & 2553/2019

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**Interpretation:** This legal issue involves the interpretation of judicial hierarchy and the

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**Application:** In this specific case, the High Court's dismissal of CP(IB) No.2987 &

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## Parties

- **Judges:** Bhaskara Pantula…; Veera Brahma Rao…
- **Appellants:** Oriental Bank of…
- **Respondents:** Sai Rayalaseema…

## Timeline

- **2022-06-20 — Hearing…**: Hearing held on 20.06.2022 at…
- **2022-06-01 — High Court Or…**: Order passed by the Hon'ble High Court of Telangana dated 1.06.2022 in CP(IB) No.2987 &…

## 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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