# In the matter of Sai Rayalaseema Paper Mills Ltd. IA No. 1124-2019, IA No. 276, 277, 1120 & 1230-2020 & IA (IBC)-1140-2021 in CP (IB) No. 154-7-HDB-2019

> NCLT judgment dated 2022-06-20. Citation: TCN-2022-NCLT-02167. The case involves a company petition/application under IA No.1124/2019 & IA…

- **Court:** NCLT
- **Order date:** 20 Jun 2022
- **Citation:** TCN-2022-NCLT-02167
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sai-rayalaseema-paper-mills-ltd-ia-no-1124-2019-ia-no-276-277-1120-1230-2020-ia-1d345af4

## Summary

### Background

The case involves a company petition/application under IA No.1124/2019 & IA No.276,277,1120&1230/2020 & IA (IBC)/410/2021 in CP (IB) No.154/7/HDB/2019 before the National Company Law Tribunal (NCLT), Hyderabad Bench. 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 case is under Section 7 of the Insolvency and Bankruptcy Code (IBC).

## Facts

The Oriental Bank of Commerce initiated insolvency proceedings against Sai Rayalaseema Paper Mills Ltd under CP(IB) No.154/7/HDB/2019. The case was being heard by the NCLT Hyderabad bench. During the proceedings, the Hon'ble High Court of Telangana passed an order dated 1.06.2022 dismissing CP(IB) No.2987 & 2553/2019. Subsequently, a memo was filed by the Promoter stating that the matter is no longer on record. Based on the High Court's order and the Promoter's memo, the NCLT dismissed CP(IB) No. 154/7/HDB/2019. The relevance of the High Court order is that it effectively nullified the basis for the insolvency proceedings before the NCLT.

## Issues and analysis

### Issue 1: Whether the NCLT was correct in dismissing CP(IB) No. 154/7/HDB/2019 based on the order of the …

**Ratio:** When a higher court (High Court) passes an order that directly impacts the proceedings

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**Reasoning:** The NCLT reasoned that the Hon'ble High Court of Telangana's order dismissing CP(IB)

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**Interpretation:** This legal issue involves the interpretation of the powers and limitations of

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**Application:** In this specific case, the High Court's order directly addressed the subject

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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…**: Hon'ble High Court of Telangana passed an…

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