# 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-02177. The case involves a company petition/application under IA No.1124/2019 & IA…

- **Court:** NCLT
- **Order date:** 20 Jun 2022
- **Citation:** TCN-2022-NCLT-02177
- **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-97de2b84

## 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. The hearing was conducted by the National Company Law Tribunal, Hyderabad Bench, via video conference. The corporate debtor is Sai Rayalaseema Paper Mills Ltd. The petitioner is Oriental Bank of Commerce, and the respondent is also Sai Rayalaseema Paper Mills Ltd. The application is filed under Section 7 of the IBC.

## Facts

The National Company Law Tribunal (NCLT), Hyderabad Bench, conducted a hearing via video conference regarding a company petition/application. The corporate debtor involved is Sai Rayalaseema Paper Mills Ltd. Oriental Bank of Commerce is the petitioner, while Sai Rayalaseema Paper Mills Ltd. is also listed as the respondent. The case is related to IA No.1124/2019, IA No.276,277,1120&1230/2020, and IA (IBC)/410/2021 in CP (IB) No.154/7/HDB/2019, filed under Section 7 of the Insolvency and Bankruptcy Code (IBC). The Hon'ble High Court of Telangana passed an order dismissing CP(IB) No.2987 & 2553/2019. A memo filed by the Promoter stated that the matter is no longer in the record. Consequently, the NCLT dismissed CP(IB) No. 154/7/HDB/2019, adhering to the High

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## 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:** The principle of judicial comity and the binding nature of higher court orders

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**Reasoning:** The NCLT dismissed CP(IB) No. 154/7/HDB/2019 because the Hon'ble High Court of Telangana

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**Interpretation:** This demonstrates the hierarchical structure of the judicial system, where the

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**Application:** Given the High Court's dismissal of related CP(IB) No.2987 & 2553/2019 and

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## Parties

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

## Timeline

- **2022-06-20 — Hearing…**: Hearing of National Company Law Tribunal, Hyderabad Bench held at 02:30 PM through video…
- **2022-06-01 — High Court…**: Order passed by the Hon'ble High Court of…

## 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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